Research On The Influence Factors Of Outward Foreign Direct Investment In Manufacturing Industry

Chinese outward foreign direct investment(OFDI)has grown rapidly and it has been ranked second in the world since 2016,as the pace of internationalization of Chinese enterprises advanced.The rapid development of OFDI has changed Chinese long-term foreign economic pattern,which was used to be dominated by the foreign trade and the foreign investment attracting,and OFDI has become one of the important pillars of Chinese open economic development.Among them,the Chinese manufacturing OFDI performed well,its percentage was 18.3%in the net of OFDI of the whole industries in 2016.Although Chinese manufacturing industrial OFDI developed rapidly,its situation was not optimistic currently.This study found that Chinese manufacturing industry is in a low position in the global value chain,which means that most of the profits have long been captured by advanced enterprises in developed countries.China's manufacturing industry has invested more to some developed countries like Europe,but the performance in developed countries is not higher than developing countries.In addition,due to limited funding sources and lack of competitiveness,some privately-run manufacturing enterprises and small and medium-sized manufacturing enterprises in China are blindly following the trend of overseas investment.Therefore,the performance of privately-run manufacturing enterprises and small and medium-sized enterprises in overseas markets is greatly affected by the market fluctuations,The performance is not ideal.There are five chapters in this paper and the main contents of each chapters are as follows:The first chapter is the introduction.This chapter explores the research background and significance of research firstly,combs the corresponding studies and based on these to decide researching methods and structure,and finally the innovation and deficiencies of this article were elaborated.There are three main innovations in this article.One is to classify the development of the host country,the nature of the parent company and the size of the parent company,and study the factors which influence OFDI in China in different situations.The second is to explore how Chinese manufacturing enterprises improve the performance of their overseas operations by studying the influencing factors of operating profit of Chinese overseas subsidiaries.Thirdly,database application innovation,this article used the world-renowned financial empirical database Orbis,the data detailed,strict statistical methods,the reliability of regression results.The second chapter is the theoretical basis.This chapter focuses on the influencing factors of foreign direct investment in China's manufacturing industry combs the Theory of Motivation Factors Combination,the Theory of Industrial Upgrading of Technological Innovation,the Theory of Investment Development Path and other theories that affect China's manufacturing foreign direct investment,and how these theories explain the market size,resources,costs and technology impacting the foreign direct investment.The third chapter has analyzed the status quo of China's manufacturing industry's foreign direct investment.This paper analyzes the general characteristics,the way of entry,the investment subject,the industry and the location distribution of China's manufacturing industry s foreign direct investment China's manufacturing foreign direct investment in 2016 net flow reached 31.06 billion US dollars,of which green investment is still the main investment,but in recent years,cross-border mergers and acquisitions are increasing,the number of mergers and acquisitions increased from 34 to 241 during 2001to 2016.Private enterprises become the main force of cross-border mergers and acquisitions,among the successful cases of mergers and acquisitions,80%are private enterprises.From the investment point of view,due to market size,policy guidance and other reasons,China's manufacturing foreign direct investment is mainly concentrated in Asia,North America and Europe,the country along the way the country's investment has gradually increased.The fourth chapter is the empirical test.In this paper,the panel logit model was used to study whether the multinationals invested outwardly or not and what their influencing factors were.From the overall return,the main influencing factors of China's manufacturing FDI are resource factors,market factors and technical factors.Considering about the process status of the host country,developed countries mainly affected by resource factors,market factors,technical factors and the degree of openness of the host country,while the developing countries are mainly affected by market factors,resources Factors and the impact of infrastructure,and technical factors such as the impact is not obvious.Toward the nature of foreign direct investment enterprises,state-owned enterprises are mainly affected by the market factors,resource factors and technical factors,the private sector is mainly affected by the resources and market factors.Finally,from the scale of the company,the larger size of the manufacturing enterprises mainly affected by market factors,resource factors and technical factors,the smaller the company's investment is mainly affected by the size of the market and the host country's legal situation.The fifth chapter is the conclusion and recommendations.China's manufacturing enterprises is still at the low end in the global value chain,the lack of key technology and core technology has always been a major problem in China's manufacturing development From the investment point of view,China's manufacturing business OFDI mainly concentrated in the developed countries,but from the return of profits to look at the development of China's investment more favorable.From the impact of factors,China's manufacturing enterprises mainly by the technology,market size and resource factors.At the same time the size of the market for small and medium-sized people due to the impact of corporate profits is more significant.In view of the above problems,from the government and the enterprise two aspects of the corresponding recommendations.