Evaluation Of The FDI Environment Of The Countries Along The "Belt And Road"

Up to now,it has been four years since the concept of "Belt and Road" was put in 2013."Belt and Road" is one of the three major national strategies of our country.Through this strategy,our country hopes to promote the politics of the countries along the route of "Belt and Road",and to promote the development of economic."Belt and Road" strategy can make full use of the resource advantages of various countries and optimize the industrial structure.The final purpose of the "Belt and Road" strategy is to achieve the common development of the countries along the route.However,many of the countries along the route are developing countries,and a widespread problem of those countries is lacking funding.Foreign direct investment is one of the main forms of modern capital internationalization,which provides an important driving force for modern economic development.China is the first country to put forward the concept of "Belt and Road".In order to play its leading role better in the countries along the route,China provided its first funding.The funding was used to set up a "The Silk Road fund".Although the Silk Road Fund can provide investment for the development of countries along "Belt and Road",but the existing funds of the Silk Road Fund are extremely insufficient.Owing to the common development of the countries along the "Belt and Road" route,and these countries need a lot of investment,we have to encourage foreign investor to invest funding and start program in those countries.When the funding which comes from other countries grow,China's correct investment guidance plays an important role in the whole world.If we want to find the most efficient and appropriate investment mode,we need to analyze the environment and invested mode of the countries along "Belt and Road".The "Belt and Road" strategy involves many countries.There are few references of studying the direct investment environment in the countries along the route,because most of the documents are only focus on the economic effects of direct investment or the significance of investment.Also there are no documents to point out the future direction of direct investment in China.Therefore,in this article,the author will study and classify the investment environment of the countries along Belt and Road.Then the result can provide the future investment direction of China.At the meeting of the Dialogue on strengthening Connectivity Partnership,President Xi Jinping proposed five directions.Thus the author collected 21 indicators from these five directions,which reflect the political,economic and social environment of the countries along the route.This paper uses 21 indicators to explain the direct investment environment of the countries along "Belt and Road",and extracts 6 factors from the 21 indicators through factor analysis.Indeed,using factor scores to evaluate and rank the direct investment environment of the countries along the route,the results are as follows: India,Russia and Indonesia have the best direct investment environment,and Maldives,Bhutan and Timor-Leste have the worst direct investment environment.Then,the direct investment environment of the countries along the route is clustered basing on the six factors extracted above.Finally,the direct investment environment of the countries along the route is divided into 5 categories: I countries,II countries,II countries,III countries,IV countries,and V countries.The classification results showed that the direct investment environment was best in Group I,II,and Group III countries.After the best group is IV countries.Moreover,the number of foreign direct investment received by the former four countries already exceeds 80% of the whole funding.However,the countries among "Belt and Road" face severe circumstances,because most of the countries along "Belt and Road" are classified into category V.Finally,based on the results of the previous study,it is pointed out that in the future,India and Russia can become major investors in our country,giving priority to the Philippines,Malaysia,Pakistan,Iran,Saudi Arabia,in addition to India and Russia.Vietnam and Egypt make direct investment.In addition,regional investment plans should be adjusted to strengthen direct investment in Eastern Europe.At present,we need to have a comprehensive understanding of the countries along the route.The "Belt and Road" strategy will continue to advance and strengthen communication with the countries along the route."Belt and Road" can be better built.China needs to make overall plans in carrying out direct investment.In other words,when choosing countries for direct investment,China should not only take into account the comprehensive situation of the direct investment environment of each country,The investment environment belongs to the category V country,our country should set up the perfect investment risk coping strategy,in order to ensure that we can deal with the investment risk freely when the investment environment is bad.