The Study Of Global Financial Crisis’s Impacts On The Determinants Of Chinese OFDI Location Choice

Recently,Chinese outward foreign direct investment(OFDI) has experienced a rapid growth that financial crisis can not stop. With the sharp drop in the global investment market,facing new situation,China has to take steps to reach the new location to support the (speedy development.This paper tries to analyze the impact that the financial crisis causes through comparative study on the differences of determinants of China’s OFDI location choice. Firstly, this paper summarizes the classic theory on location choice of outward FDI in two perspectives,which are developed countries and developing countries,at home and abroad.After that,this paper summarizes research results of the impacts of financial crisis on location selection of Chinese outward foreign direct investment.Next,this paper analyzes the current situation of Chinese flow and stock OFDI,the differences of Chinese location choice among countries and continents before and after financial crisis and the opportunities and challenges that the crisis brought to Chinese OFDI, the reason why Chinese OFDI goes different way with the global market and the risks Chinese companies might run into all be analyzed. Then,this paper separates the panel data sample into two phases (2003-2006) and (2007-2011)),makes separately regression analysis on each phase of data.After that,this paper compares the differences between the two phase’s data and explains them.At last, it uses DID method to verify the regression result.Finally, from two ways,this paper makes some corresponding suggestions on the basis of the conclusion of research.