A Research Of Chinese Machinery And Electronic Enterprises' Ofdi In The View Of Institutional Economics

With the rapid growth of overseas trade in China's machinery and electronic industry and the "going out" strategy implemented by the Chinese government,China's foreign direct investment in machinery and electronic enterprises is also increasing.However,the current academic circles for China's foreign direct investment research see Chinese firms as a whole mostly,there are few sub-sectors of targeted research.Secondly,in recent years,institutional factors have become a hot issue for scholars to study the factors influencing OFDI.From the Knowledge-based view,scholars study the impact of institution and international experience on OFDI.However,there is less research on the combination of home country and host country institutional factors.As a result,this thesis will see Chinese machinery and electronic enterprises as a research object and study the influence of home government support,host country's institutional environment and prior international experience on OFDI from Chinese machinery and electronic enterprises by case study.At the same time,the thesis will analyze the OFDI entry mode based on the different motives.This thesis has a guiding role for Chinese machinery and electronic enterprises' OFDI.According to the exploratory case study,this thesis provides the following proposition: when the Chinese machinery and electronic enterprises lack the experience of the host country,the policy support of the Chinese government and the high quality institutional environment of the host country can effectively promote the foreign direct investment of the enterprises.When the motive is seeking foreign market,the entry mode will be changed based on the level of control.If the enterprise needs high control of the foreign subsidiary,it should choose new wholly-owned,otherwise,the need of low control should choose joint venture.If the firm has prior experience,new wholly-owned will has both high control and low risk.When the motive is seeking strategic assets,enterprises usually utilize diversified entry mode.When the motive is seeking efficiency,enterprises usually choose joint venture,which can lower the cost of self-built factory as well as enjoy benefits and channels.According to the above conclusion,this thesis will give the following suggestions.The government should give full play to the functions of managing the economy and provide a targeted "going out" policy support document for different quality of host country's institution environment.The government should pay attention to the problem of intellectual property infringement and improve the national intellectual property system.When enterprises are going to expand abroad,they should follow the government document and choose government's preferred host countries and sectors.When enterprises choose host country and enter mode,they should pay attention to taking the risk,especially small-sized and medium-sized machinery and electronic enterprises without prior international experience,they should not blindly pursue low cost.