Transitions Of Host Country Leaders And China's OFDI In The Belt And Road Initiative Area

The role of leaders in national economic growth is becoming increasingly important.Based on the panel data of China's OFDI location during 2003-2014,this paper examines the influence of transition of host country leaders on Chin's OFDI in the Belt and Road Initiative area.Overall,we haven't found robust evidence that it exhibits a significant relationship between them untill three yeas later.But further study shows that the influence of host country leaders' transitions on China's OFDI varies sharply with different political systems and how host country leaders come to power.The results suggest positive linear relationship in one year after the transition in democratic systems,but autocratic countries suffered “Time lag”.Besides,the way how leader come and off to power also have different effects of China's OFDI.Irregular transitons have a significant negative impact on China's OFDI in autocratic countries.In domocratic systems,however,more perfect social system reduce the political risk.Therefore,Chinese enterprises must attach more importance to the change of leader's transition for their foreign direct investment and take correspondingly strategy.