Regulatory Effect Of OFDI Reverse Technology Spillover

OFDI is an important part of China's "going out" strategy and one of the main driving forces for sustainable development of Chinese economic.Since the 21st century,the OFDI of Chinese enterprises has made great progress,and it is the first time in 2015 to achieve net capital output.But there are still some imperfections compared with developed countries.With China's capital and financial markets open to the outside gradually,China's OFDI location selection rules will have great significance for the strategic development of China's OFDI.This paper integrated the OFDI reverse technology spillovers,country-pair institutional distance,OFDI motivations and location selection under the same framework,focusing on the study of direct impact,that country-pair institutional distance has in OFDI location selection,and indirect impact that country-pair institutional distance has in OFDI location selection through OFDI motivations.Morever,this paper studied the effect of regulating,which OFDI reverse technique spillover has in the above direct impact and indirect impact.In the theoretical research,this paper established the endogenous selection model of heterogeneous enterprise's OFDI motivations,introducing the country-pair institutional distance and OFDI reverse technology spill in sequence.And then study the influencing factors of macroeconomic OFDI from multi-level,basing on the micro-enterprise OFDI strategic decision-making behavior.In the empirical research,this paper made an empirical analysis using the Space Durbin Model(SDM),basing on the direct investment data of China from 2003 to 2015.The empirical analysis results are in line with the theoretical expectation.The results showed that:(1)The countey-pair institutional distance will restrain the OFDI of the host country to the host country;(2)The countey-pair institutional distance has a negative impact on the OFDI of the home country's enterprises,which have market-seeking motivation,the enterprises tend to invest in the host country which has shorter countey-pair institutional distance.(3)The countey-pair institutional distance has a negative impact on the OFDI of the home country's enterprises,which have strategic resource-seeking motivation,the enterprises tend to invest in the host country which has shorter countey-pair institutional distance.(4)OFDI reverse technical spillover plays a positive role in the direct influence of the countey-pair institutional distance on the selection of OFDI location.(5)OFDI reverse technology spillovers plays a positive reglating effect in the indirect influence of the countey-pair institutional distance on the selection of OFDI location,throughing the enterprises' choice of market-seeking motivation.In the host country with a large distance from the home country institution,if the OFDI reverse technology spillovers are strong enough,they can offsetting some negative effect,that countey-pair institutional distance has on OFDI,so that the host country is still able to attract the direct investment of enterprises,which have market-seeking motivation.(6)OFDI reverse technology spillovers plays a positive reglating effect in the indirect influence of the countey-pair institutional distance on the selection of OFDI location,throughing the enterprises'choice of strategic resource-seeking motivation.In the host country with a large distance from the home country institution,if the OFDI reverse technology spillovers are strong enough,they can offsetting some negative effect,that countey-pair institutional distance has on OFDI,so that the host country is still able to attract the direct investment of enterprises,which have strategic resource-seeking motivation.The conclusion of this paper provide an important reference to promote China's economic restructuring and upgrading in the new era to cope with the new economic normal,enhance the performance of OFDI,and for OFDI strategic decision-making of the government and enterprises.