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Research On The Location Choice For China’s Outward Foreign Direct Investment From The Perspective Of Multiple Distance

Posted on:2017-07-04Degree:MasterType:Thesis
Country:ChinaCandidate:X L WangFull Text:PDF
GTID:2349330536951326Subject:Public Finance
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After the reform and opening up,especially in the 21 st century,with the rapid improvement in the comprehensive national strength,and successfully entered into the WTO and the successful implement of the strategy of "going out",the development of China’s Outward Foreign Direct Investment obtained by leaps and bounds.Outward Foreign Direct Investment has become the important way of China towards the world.In 2014,China became the world’s third largest foreign investing country for three consecutive years.And Outward Foreign Direct Investment and Foreign Direct Investment nearly reached balance for the first time.China is becoming a net exporter of capital.By the end of 2014,China’s Outward Foreign Direct Investment distributed in 186 countries and regions,the investment coverage reached 79.8%.China has become a new force in the field of global investment,forming the phenomenon of "overseas Chinese".However,there are many serious problems in China’s Outward Foreign Direct Investment,one of the important problems is the location choice.Under the complicated and changeable environment at home and abroad,how to determine the factors that affect the location choice of China’s Outward Foreign Direct Investment,to seek the optimal location for "going out",to maximize enterprise value has become an important topic.This paper selects three aspects,such as institutional distance,cultural distance and geographic distance as the research angle of view,analyzes the three distance factors’ influence on China’s Outward Foreign Direct Investment location choice,provides policy advice to optimize the China’s Outward Foreign Direct Investment location choice.First of all,I analyzes the location theory and location choice theory includes in Outward Foreign Direct Investment theory.Secondly,combined with a large number of detailed data and charts,I analyzes China’s Outward Foreign Direct Investment distribution condition concerning the region,nation and industry,and thus conclude that China’s Outward Foreign Direct Investment geographical distribution is faced with highly concentration,unreasonable investment distribution and high risk in resources investment risk and other problems.Thirdly,this paper expounds the system of the concept of distance,cultural distance and geographic distance and its measurement method,chooses 2003-2014 panel data of Outward Foreign Direct Investment flow between China and 43 of the host country and region as dependent variable,defines system of distance,cultural distance and geographic distance as independent variables,and uses measurement software Stata12.0 as analysis tool,uses the improved gravity model.So conclusions can be made as follows: institutional distance,cultural distance and geographic distance are negatively related to the China’s Outward Foreign Direct Investment flow.In addition,this paper also analyzes the gravity of the host country to foreign investment,which can be divided into four types,such as huge gravity type,growth of gravity,gravity general type,and lack of gravity type.On the basis of the research conclusion,this paper puts forward several policy suggestions to China’s Outward Foreign Direct Investment location choice: strengthening the investment to Asian neighboring countries with closeness in institutional distance,culture distance and geographic distance to China,developing Asian neighboring countries as the key investment district,narrowing the culture distance and system distance between China and the developed countries and regions,actively building the investment system in line with international standards based on developed countries and regions strategic areas,continuing propaganda the image of enterprises and countries,as well as narrowing the difference between eastern and western cultures.
Keywords/Search Tags:OFDI, Location choice, Institutional distance, Cultural distance, Geographic distance
PDF Full Text Request
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