Institutional Arbitrage Research On Foreign Direct Investment Competition Decision-making Model Of State-owned Enterprises With Mineral Resources

The world economy is in a downturn period.It is an difficult and tortuous road to recovery.Global foreign direct investment flows continue to decline in the world economic downturn background.China places a positive attitude to adapt to the latest economic environment.China has implemented some new policies that facilitate local enterprises to go abroad into the world market.Chinese enterprises adapt to the trend to accelerate the pace of foreign investment.In all types of enterprises,the state-owned mineral enterprises had impressived performance:Their investments had large scale and high frequency without good results.It's proved that the state-owned mineral enterprises would face much truble when they make OFDI.Therefore I tried my best to captrue them and find another different investment motivation which from industry and business characteritics.I tried to explain investment decision-making behavior of enterprises from a new angle.Firstly,under the theoretical framework of foreign direct investment,I analyzed and summarized the characteristics of the mineral resources industry and enterprise system features.More importantly,I identify the regime arbitrage motive of the state-owned mineral resources in the OFDI process.Secondly,I constructed the option game model in monopoly situation and competition situation.Then I had an simulation to know the effect of the institutional arbitrage to enterprises;investment behavior in OFDI.Here are the rezults:? Whether or not there is competition,institutional arbitrage have reduced the threshold of an enterprise's investment.? Both of Competition and institutional arbitrage effect the critical value of business investment.And their influence is greater than the single factor's.? To some extent,competition weaken the influence of institutional arbitrage.Finally,I think it's necessary to narrowed the space of institutionnal arbitrage.The state-owned enterprises in mineral resources sector to compete with other forms of ownership should be guided to weaken the negative impact of the institutional arbitrage.