Research On The Influencing Factors Of China ’s Direct Investment In Eu-analysis Of Panel Data Based On 2007-2015 EU’s 20 Countries

Under the general trend of economic integration and economic globalization,more and more Chinese enterprises choose to go out and take the initiative to participate in the allocation of resources in international markets and actively explore overseas markets.On the one hand,it has led to the recovery and growth of the world economy.At the same time,it has also strengthened the economic cooperation among various countries and the adjustment of industries and structures among various countries.China’s direct investment in the EU has shown a rapid growth since 2007,especially showed an even more explosive growth in Europe after the debt crisis.In 2016,China’s direct investment increased by 76% in the EU.But at present,the scale of China’s direct investment is still very limited in the EU,and there is still much more room for development in the future.In this context,this paper conduct a preliminary analysis of the investment environment investment in various countries in the EU firstly,then mainly combines the theory of motivation factors combination and chooses the direct investment flows from 2007 to 2015 in China’s 20 EU countries as explanatory variables through the establishment of panel data regression model,This paper chooses the direct investment flows from 2007-2015 in China to 20 EU countries as explanatory variables and selects the GDP per capita,the change rate of labor costs,degree of political corruption control,the degree of political corruption control,import and export volume to China,number of patents,the exchange rate level of China to the 20 EU countries and lag phase of direct investment flows as explanatory variables,and we select GDP per capita and the degree of political corruption control’s interaction terms as explanatory variables.Then we draw a conclusion on the factors affecting investment in Europe.Finally,we give some rationalized proposals on China’s direct investment in the EU for enterprises and the government.The main finding of this paper is that among the many factors that affectChina’s direct investment in the European Union,the following factors have an important impact on China’s direct investment in Europe:1.The countries with larger per capita GDP have higher requirements on the quality of products.There is a possibility of being replaced,which further affects China’s investment in these countries after China’s products are exported to such countries.2.Countries with developed bilateral trade are more attracted to China’s direct investment;3.The host country’s degree of corruption control may exert its “lubrication effect” and benefit China’s direct investment in the EU.4.There are many uncertainties and risks in the changes of exchange rate,so there may be uncertainties in the expected returns.Therefore,it may have an inhibitory effect on direct investment.5.Under the superposition of the economic environment,corruption factors may exert its “friction effect” and have a negative impact on China’s investment in the EU;...