Research On The Impact Of Institutional Difference In China On The “One Way” National OFDI

In this paper, we explore the impact of institutional differences between host countries and China on China’s foreign direct investment(OFDI), based on the empirical facts of the "one way" state of China’s foreign direct investment(2003-2014).China, as the largest developing country in the world, is developing rapidly. Since the implementation of the reform and opening up, China’s foreign direct investment has been greatly developed since the end of 1970 s. According to the year 2014 China Foreign Direct Investment Statistics Bulletin shows, in 2014, China’s foreign direct investment, net for1231.2 billion US dollars, growth of 14.2% over the previous year, for three consecutive years ranked according to the country(region) of the global ranking of the three. And there are more than 1.85 domestic investors in a total of 2.97 foreign direct investment enterprises, distributed in 186 countries around the world(regions). China in the field of international direct investment rise caused the wide attention of scholars, so scholars attempt to study China’s foreign direct investment from the perspective of the system,including system differences is the new and hot spots. But effects of host country and the Chinese system differences of China’s OFDI exactly how existing research literature of divergent views, both think institutional differences inhibited the China’s OFDI, and that the system differences of China’s OFDI is produced to promote the role of. Therefore, we need to do more research to clarify. On the other hand, the government put forward the"Chinese since The Belt and Road" strategy, actively promote the "The Belt and Road construction, accelerating foreign investment facilitation. In 2015, China’s enterprises in 49 countries related to "The Belt and Road" of direct investment, the investment grew 18.2%.Based on the above two points, we started this study, to investigate the differences in the effects of Chinese system of "one road" in the state of OFDI.Before the about the impact of the carding system differences on the OFDI theory analysis, first of all, we will give a definition to foreign direct investment, institution,institutional differences in conceptions, secondly, we give the measure three aspects of institutional differences, the differences in political system, economic system and cultural system and finishing abroad and literature review. In the part of theoretical analysis, this paper mainly introduces the International Production Compromise Theory and the cost and expense theory which supported this study. Finally, on the basis of this analysis, the paper analyzes the impact mechanism of institutional differences on OFDI and puts forward the hypothesis.In the part of empirical analysis, we use China’s foreign direct investment on the "way" national, based on gravity model by generalized least square method to measure research, in order to investigate the effects of differences between the host country and China’s system of China’s OFDI general rules. In the gravity model, we take three variables as explanatory variables, the differences of political system, economic system and cultural system, and we introduce 7 control variables for regression. The results show that: the formal institutional differences in political system differences and economic system differences on China’s OFDI have significant positive impact, and informal institutional differences between the difference in culture and system will significantly impede China’s foreign direct investment. Then, we summarize and analyze each variable based on the regression results.Finally, based on the theoretical and empirical results, we summarize the full text and put forward relevant policy recommendations from two aspects of the macro government and micro enterprises.