A Study On The Impact Of Host Country Business Environment On China's OfDI

Since 2005,China's foreign direct investment(OFDI)traffic continued to grow for more than ten years,2015 is the world's second largest,the first time to become a net capital export.Therefore,the research on influencing factors of OFDI in our country is widely concerned by academia,but both literatures focus on the influence of our own factors on OFDI.The study on the influence of host country business environment on our OFDI is still rare.Based on the classification of the business environment of the World Bank,this paper subdivides the business environment into nine sub-indicators,and then uses the econometric analysis method to study the influence of the host business environment on the OFDI in our country.The research content of this paper is divided into the following six parts:The first part is the introduction,introduces the research background,the research content,the research method and the research frame;The second part is the literature review,introduces the domestic and foreign scholars to the business environment and OFDI The third part is the theoretical basis and the basic concept,introduces the theoretical basis and some related concepts used in this paper.The fourth part introduces the present situation of China's foreign direct investment and the business environment of the host country.The fifth part analyzes the panel data of 29 countries from 2006 to 2015,analyzes the business environment of the host country and the OFDI in China,and analyzes the empirical results by establishing the extended gravitational model.Six parts have come to the conclusion and made recommendations.In order to make the measurement results more accurate,join the GDP,the state of the infrastructure,the distance between each country and China,the population of each country,the bilateral trade volume,the inflation rate,the seven control variables of the natural resources,the foreign direct investment flow as the object,To host the business environment factors as explanatory variables,respectively,to establish a model to analyze the business environment of the sub-indicators and the relationship between China's OFDI.The results of this paper show that in the nine sub-indicators of the business environment,China's host country's investment is more inclined to handle the construction permit,pay taxes,cross-border trade,access to credit and bankruptcy of these five factors leading edge Countries,and start-up enterprises,the registration of property,the protection of minority investors and the implementation of these contracts with China's foreign direct investment relationship is not large.Finally,this paper gives the following suggestions based on the results of empirical analysis:the government should collect information about the host country overseas,promote the reform of the shareholding system of state-owned enterprises,reduce the "political" investment,improve the legal system,provide legal protection for enterprises;Establish a management system suitable for the enterprise,continue to carry out industrial upgrading,improve the core competitiveness of enterprises and technology level,and also have their own overseas market information collection activities.