Chinese Outward Foreign Direct Investment:Location Choice And The Determinants

In 2015,Chinese outward foreign direct investment(OFDI)flow ranked second in the world and exceeded inward foreign direct investment.Not just a big trading nation,in other words,China became a net capital output country in 2015.Therefore,it is necessary to research the location choice of Chinese OFDI,analyze the influence factors of foreign direct investment in China and give the relevant policy suggestions.These studies are beneficial for improving the all-dimensional,multi-layered and wide-ranging opening pattern in China.This thesis analyzed the location distribution of China's OFDI in detail after reviewing the theories of foreign direct investment and relevant researches in recent years.The analysis of location distribution paid attention to both stock and flow,and studied from three aspects:the general trend,the host country distribution and the industry distribution.The characteristics of location choice and the potential problems are concluded by analyzing current situation.Meanwhile,based on the gravity model,this thesis used the panel data in 68 countries from 2007 to 2015,verified the relationship between the host country's economic scale,labor costs,geography,culture,politics,technology,natural endowments and China's OFDI.Current situation analysis and the empirical results confirm each other,and enhance the accuracy and persuasion of the conclusions in this thesis.It is found in this thesis that China's OFDI is widely distributed in six continents while focus on different industries.Asian countries,especially the countries along the Belt and Road,attracted a great deal of China's OFDI.Geographic distance has the negative correlation with China's OFDI,when the preferential tax policies and the good political relations between host country and China have the positive correlation.The direct investment to manufacturing industry with developed science and technology increased rapidly in European and American area,when the level of science and technology in host country has a significant positive correlation with OFDI.Cheap labor force has the limited attraction to China's enterprises,and countries with abundant natural resources play an important role in China's OFDI.Finally,the relevant policy suggestions are put forward based on the above conclusions.