Study On The Factors Influencing China's Direct Investment In Germany

Long term since the China-Germany economic relations mainly dominated by trade,the RMB appreciation and the context of the European debt crisis,trade between China and Germany will no longer be the export oriented trade mode,trade situation will be more complicated and grim.Through direct investment in Germany,China can not only effectively avoid all forms of trade barriers,but also be able to integrate into economic globalization with a more proactive image.At the same time Germany as Europe's largest economies and most fully competitive market,but also China's most important economic partner,in the aspect of the financial system,legal system,infrastructure,technology research and development,not only are at the forefront in Europe and the world,China is an ideal destination for investment.Under the dual drive of "innovation driven strategy" and "made in China 2025" strategy,under the strategic docking of "industrial 4" in Germany,many Chinese enterprises set off an upsurge of direct investment in Germany.Therefore,through the study of the factors affecting China's direct investment in Germany,it can not only provide guidance for the current investment companies in Germany,but also provide reference for the policy formulation of direct investment in Germany.Foreign direct investment in developing countries based on the previous theory,this paper reviews the development process of China direct investment in Germany,summed up the scale of investment,industry distribution,regional distribution of investment characteristics,analysis found: Germany's economic development level and the size of the market,the country's institutional environment,trade openness,technological development,Germany early the stock investment,exchange rate risk and the debt crisis is the main factor affecting the China direct investment in germany.Using time series data from 2003 to 2014,the Chinese of German direct investment flows,Germany's GDP,Germany's R & D investment,trade dependence,institutional variables,the RMB exchange rate against the euro and the European debt crisis as observation indexes,construct the VAR model to carry out empirical research on the seven factors.The results of the empirical analysis show that the impact of the German system quality and the high and new technology level on the direct investment of China is most obvious,while the European debt crisis has a significant role in promoting.In the process of China's direct investment in Germany,the stock of investment and the economic scale of Germany had a significant positive impact,while the latter appeared a certain degree of rebound.In the short term,the trade dependence will actively promote China direct investment in the development of Germany,in the case of increasing investment,trade dependence effect will gradually decrease;the exchange rate has little influence on the direct investment in Germany China effect can be neglected.Therefore,investors need to be familiar with the relevant German system,get rid of obstacles to sustainable investment,while stabilizing the manufacturing technology access,while increasing R & D investment.The Chinese government needs to actively guide and support investors.