Analysis Of The Influence Factors Of China’s Outward Foreign Direct Investment

Remarkable economic achievements have been attained in China in the past three decades and the effective use of foreign investment has contributed much to it. China’s outward foreign direct investment has been once again the highlight of the world economy by the average annual growth rate of 50% in the last ten years. According to Dunning’s stage theory of international direct investment, the macroeconomic fundamentals of outward foreign direct investment have almost been built in China.However, there are still many uncertainties and instabilities under the new situation,so we should study China’s OFDI factors comprehensively and systematically. Only by doing this can we make effective stimulus policies and risk prevention measures for "going out". In view of this,this article study the external and internal influencing factors based on the background of our China’s outward foreign direct investment,including this following part:First, the paper surveys and comments the correlative literature, and introduces correlative theories about the influencing factors of outward foreign direct investment.Secondly, the paper find the existing problems of our China’s foreign direct investment by analyzing the status quo of China’s foreign direct investment.Meanwhile,the paper find the gap of our China’s foreign direct investment compared with Japan and America.Then, the paper analysis the internal and external influencing factors of foreign direct investment using the empirical analysis. In view of the internal factors,the paper use the Grainger test to obtain the relationship between the level of economic development, the level of wages, foreign exchange reserves of foreign direct investment and the outward foreign direct investment. Take the United States and Russia for example, the paper demonstrate the influence of external factors of foreign direct investment in China using the regression analysis.Finally, the paper put forward suggestions for the government and enterprise based on the current situation of China’s outward foreign direct investment and the results of the empirical analysis of China’s foreign direct investment.