The Analysis Of The Impact Of Institutional Difference On China’s OFDI

This paper focuses on the China’s OFDI which is extensive researched, and uses researching few rules as the point-cut. Based on reading a lot of literature, some dedicate home country’s investment motivations and effective factors of host country while the institutional factors have been poorly studied. This will treat the institutional factors as a starting point to influence on Chinese current foreign direct investment, especially the differences between host country and home country. This study put objective factors in the traditional system and subjective factors into consideration.This paper is divided into five parts. Chapter Ⅰ:Introduction, this part describes some characteristics of China’s foreign direct investment in recent years and also includes the background, significance, contents, methods, innovations and shortcomings of this research. Chapter Ⅱ：Literature review, mainly divided into two main lines. One is the development of FDI’s theory. The other is the different researches on influence factors of OFDI, especially focus on institutional factors and differences by the methods of theoretical research and empirical research. Chapter Ⅲ:Analysis of the current situation and problems of China’s foreign direct investment. Chapter Ⅳ:The first part is the theoretical hypothesis, according to the study of a large number of previous research and findings, summarizing and putting forward three hypotheses which will be verified and resolved in the in subsequent model study of empirical part. The second part is to describe the sample, variables and data selection etc.. The third part:Analysis model is established and the conclusion is gotten through the empirical analysis. What conclusions the research gets are:the classical objective variables in the OFDI influence continues to play roles, but the effects of some variables are not significant; the better quality of institutional factors of the host country are, the stronger preference to invest for China have and the bigger investment amount are; the greater institutional differences between China and the host country are, the smaller amount and possibility for China invest; at the same time, for some factors, there are different effects on developed and developing countries. The third part is the seventh chapter. Chapter Ⅴ:Proposals to Chinese enterprises and Chinese government, based on the conclusion of the model analysis and interpretation, this paper suggests that Chinese government carry out the hierarchical management plan on China’s OFDI. That means developed countries and developing countries are fit for different tactics in order to get targeted investments by analysis of their separate mining potential characteristics. Hope there would be a bright future for China’s OFDI which can use the limited source to gain more achievement.