The Host System And OFDI

In 2013,the Chinese government put forward the strategic plan of “One Belt One Road”,linking up the Eurasia and Africa and the nearby sea area,and established a trade partnerships with the various countries along the way of communication and exchange,in order to build a comprehensive and multi-level intercommunication network,and realize the sustainable development of the countries within the region.China's goods and capital have entered the international market one after another.In 2013,China became the world's largest export trade country.Macro data shows that China has become a veritable trading power.Foreign investment has become an important part of China's economic development process.Based on the annual data of foreign investment in 30 countries along the line between 2008 and 2015,this paper uses the gravitational model to test the distribution characteristics of China 's outward foreign direct investment(OFDI)in the "one Belt One Road".Considering these four factors China economic scale,investment object country economic scale,population factor and the distance factor,we emphasize the relevant factors and institutional factors,including the selection of measurement system of the relevant indicators,ranking and the corresponding system are included in the scope of our investigation.This paper selects the "measure of institutional factors index of global competitiveness report" in the empirical test,based on the extended gravity model,using econometric model regression analysis,the empirical results show that: first,China's outward foreign direct investment to the "One Belt One Road" countries is related to the host country system arrangement.Second,the political risk,the level of the rule of law and the economic environment of the three system indicators will indeed have an impact on China's foreign direct investment flows,but the impact of specific indicators are not consistent.The above analysis shows that China's transnational corporations have a special preference for institutional arrangements for investment in host countries when conducting foreign investment activities.This paper provides empirical evidence for the impact of China 's outward foreign direct investment on the related factors of the host country system,and puts forward policy suggestions on China' s foreign investment activities at both government and enterprise level according to the results of empirical test.