A Comparative Study Of The Spillover Effects Of Direct Investment By China And Japan Against ASEAN

China's outbound foreign direct investment had reached a new stage in 2015.It is the first time that China's net foreign investment(flow for short)has surpassed Japan to become the world's second largest exporter of foreign investment,and exceeded foreign capital inflows over the same period,fulfilled the net capital output under two-way direct investment.However,with the strategy of "One Belt One Road"moving forward constantly,there are different opinions on China's foreign direct investment in the world.They fear that their investment position will thus be weakened by China.In particular,Japan is more worried about the external market share of their investment is diverted by China.It is the China's high-end manufacturing "going out",especially China's high-speed rail going out that makes great challenge to the position of Japan's in ASEAN.The competition between China and Japan is becoming increasingly fierce in the ASEAN market.In order to make long-term development in the competition with Japan in the ASEAN market,China must actively and rationally deal with the issue of public opinion so as to avoid misunderstanding that the host country have about China's foreign direct investment.Therefore,it is necessary to answer the two questions that "whether Chinese enterprises have a negative impact on the host countriy's market?which nation's investment will hold positive effect on the host country's economy between China and Japan".In view of this,based on the analysis of related research with regard to the spillover effect of foreign investment.The thesis makes a comparison to analysis the present situation about China and Japan's foreign direct investment in ASEAN and in world from the three levels of the Outbound investment in the scale?flow and industry.In addition,based on the panel data of the main countries of ASEAN in 2005 to 2014,The thesis makes a comparison to analysis the spillover effect of investments of China and Japan to ASEAN from the three dimensions of the ASEAN as a whole,the income level and the state-owned enterprises in China using panel fixed effect and random effect mode.The research suggests that Chinese foreign investment has an positive spillover effect on the economy of the ASEAN in the long run,while Japan shows little obvious effect in the field.Chinese state-owned enterprises have a positive spillover effect on the economy of the ASEAN.As for the low-income countries,although China's crowding-out effect is greater than Japan's in short term.However,in the long run,China's spillover effect is positive and significantly surpasses Japan's.As for the upper-middle-income countries,Japan not only has not positive spillover effect,but also its crowding-out effect is greater than China's.According to the results of this study,there are there enlightenment for the government and foreign investment enterprises.First,the government should actively respond to public opinion related to overseas investment,establish a united front of public opinion on foreign direct investment,firmly take the initiative of public opinion work,build up "Chinese brand".Second,foreign investment enterprises should not only set a good China's "face",but also to lay the "foundation" of China's foreign investment.Third,enterprises should pay attention to the choice of industry about foreign direct investment and maintain the advantages of investment in the field of infrastructure construction.This paper has great meaning both in theory and reality to Chinese enterprises to go out.In particular,it also attach great significance to the host country to recognize,have a objective evaluation of China enterprises,and set a good enterprise image of powerful Country.