Research On The Influencing Factors Of China's Direct Investment In Developed Countries

Since the reform and opening up,foreign direct investment has been the third most important measure for China to participate in economic globalization after foreign trade and attracting foreign investment.In 2015,China's foreign direct investment exceeded the amount of foreign capital it attracted for the first time.By the end of 2016,China's foreign direct investment accounted for more than 10% of the world's total for the first time,and ranked second in the world for two consecutive years.China's current development status is inconsistent with international experience.Dunning's(1981)theory of international direct investment development links the foreign direct investment of a country to the degree of economic development.At present,the per capita GDP of China is far lower than that of the developed countries such as the United Kingdom,Japan,and Canada.However,China's foreign direct investment ranks second in the world in terms of flow,and its stock ranks sixth.The strong growth of China's foreign direct investment activities,especially the continuous growth of China's "reverse investment" in developed countries,has attracted worldwide attention.This paper analyzes the early theory of foreign direct investment and the theory of foreign direct investment in developing countries,and summarizes the domestic and foreign scholars' exploration achievements in China's foreign direct investment theory.Afterwards,the relevant literature is combed,and the research ideas of this paper are mainly carried out from three perspectives,that is,the location selection factors,bilateral relationship factors and home country factors that affect China's direct investment in developed countries.This paper selects 25 developed countries from 2006 to 2016 as research samples,analyzes the panel data,and determines whether to adopt the fixed effect model or the random effect model based on the Hausman test results.The empirical test results show that China's economic strength and the market size of developed countries are the main factors affecting China's direct investment in developed countries;the economic structure of developed countries,bilateral trade volume,natural resources of developed countries,especially agricultural raw materials and fuel resources,the degree of openness in developed countries also significantly positively affects China's direct investment in developed countries,but the coefficient is relatively small;the taxation of developed countries and the participation of the Chinese government are negatively correlated,but the significance is low.After summarizing the research results,the paper suggests that the government should speed up the transformation of government functions,better serve enterprises' direct foreign investment,guide enterprises to actively create brand advantages,enhance innovation and management capabilities,and strengthen risk awareness.