Analysis On The Influencing Factors Of China's Direct Investment In The Bric Countries

With the continuous development of China's economy and promotion of economy strength,the pace of Chinese enterprises to go outside is gradually faster.Since the financial crisis in 2008,the recovery of developed countries' economy is slowly,meantime,emerging market countries' economy develops rapidly.And the Bricks is one of the leaders.Since the Russian sub Cartier Amalienborg summit in 2009,the regional economic cooperation of BRIC countries continue to deepen declaration gradually from the retreat to pragmatic.Until Fortaleza summit in Brazil in2014,the establishment of the establishment of the BRICS Development Bank,the BRIC countries economic cooperation mechanism has begun to take shape,the level of cooperation has been deepening.China increase direct investment in the BRIC countries that can not only alleviate the status quo of China's lack of resources,but also can transfer a batch of excess capacity.Therefore,we study the influencing factors on China's direct investment in the BRIC countries that can helpChina's government to provide reference for the policy of direct investment in the BRIC countries.At the same time,enterprises in the foreign direct investment,tend to choose those levels of economic development,political stability,abundant natural resources,national open degree higher betterconditions.Sometimes host infrastructure is not perfect,the political instability which will lead to the failure of the investment to the enterprise and cause huge losses.Therefore,we study the influencing factors China's direct investment on the BRIC countries,which canhelp enterprises to develop policies on the direct investment of the BRIC countries.The basic writing framework of the paper includes six parts.Part one isintroduction which includes theme's background,research significance,basic idea of the existing literature at home and abroad,research methods,research framework,innovation points and deficiencies.Part two is the theoretical basis of China's direct investment in the BRIC countries.This part introduces the theory of foreign direct investment in developed countries and the theory of foreign direct investment in the developed countries,which lays the foundation for the third chapter of China's direct investment in the BRIC countries.Part three is the analysis of the current situation of China's direct investment in the BRIC countries,which describes the general situation of China's direct investment in the BRIC countries.Part four istheoretical analysis of the influencing factors of the BRICs in China.It introduces the theoretical motivation of foreign direct investment,the motivation of China's direct investment in the BRIC countries and the mechanism of China's direct investment in the BRIC countries.Part five is the empirical analysis.it is the empiricaltest of the 5 influenced factors of China's investment in Brics countries by the method of the gravity model.Part six includes conclusion and relative policies and suggestions.The conclusion is:China's direct investment in the BRIC countries is still in its early stages.Although China's investment growth in the BRIC countries is fast,the size of the investment is small.We invest mainly in coal,iron,non-ferrous metals,oil and other energy resources,industrial investment in the BRIC countries and the level of industrial structure is low,and investment in the region is too concentrated.which are not conducive to the economic and trade exchanges between China and the brics.Therefore,the guiding role of the government needs to be strengthened,so that the foreign direct investment of Chinese enterprises do better.Therefore,we should strengthen the government's leading role.To expand the overseas market is mainly based on the theory of small scale technology theory,marginal industry theory and the theory of monopoly advantage,When the enterprise carries on the market oriented investment,the markets tend to choose good economic development,political security and sound infrastructure in the country,so we should pay great attention to the economic and political factors.The basis of searching natural resources is Internalization theory.The motivation of the enterprise is mainly to reduce the external transaction cost by which investing in the host country,so it is more concerned about the factor of resource endowment.Technology localization theory and technological innovation industry upgrading theory is the theoretical basis to obtain advanced technology,Chinese companies which seek to the technology pay great attention to science and technology.Industrial structure optimization is mainly based on the international production compromise theory and product life cycle theory which pay more attention to science and technology culture,economy,politics,the innate resources,infrastructure and other factorsIt finds that the significantly important influence factors of Chinese OFDI to four Brics countries include Chinese export to the host country,host country's market scale,natural resource endowments,economic environmental factors,infrastructure,and political environment factors.The factors of science and technology culture are not major factors.The empirical results prove that ChineseOFDI flows to Brics are mainly market-seeking type and resource-seeking type,but not skills.Government should encourage Chinese enterprises togooutside,increaseinvestment in BRICS countries,strengthen the government's guidance,make use ofnatural resource of Brics countries,increasing resource-seeking investment,and promote the transference of marginalindustries,obtain the huge market of the BRIC countries.Government should promote the friendly relationship betweenChina and BRIC countries,maintain legible benefits of Chinese enterprises in BRIC countries,and create favorable international environment for Chineseenterprises' direct investmentin BRIC countries.