Research On The Impact Of Cultural Exchanges On China's OFDI

With the increasing trend of economic globalization,countries in the world are increasingly connected in politics,economy,culture,science and technology.As an important pillar of the country's soft power,culture plays a key role in transnational economic activities,and it is receiving more and more attention from all countries in the world.In order to promote Chinese culture to the world,Office of Chinese Language Council International established the first Confucius Institute in Seoul,Korea in 2004.The establishment of the Confucius Institute is conducive to promoting the integration of Chinese culture into the world and enhancing the influence of the Chinese economy on the world.Considering that the role of Confucius Institute in China's initial foreign direct investment is more critical,this paper selects the data from 2004 to 2011 for calculation,constructs the investment gravity model,and examines the impact of cultural exchanges on China's OFDI from the perspective of the Confucius Institute.Furthermore,this paper discusses the promotion effect of cultural exchanges of Confucius Institutes on Chinese enterprises going out from two aspects: the institutional quality level of the host country and the institutional distance between China and the host country.The results show that,on the one hand,the establishment of the Confucius Institute in the host country can effectively promote China's OFDI.This conclusion is still stable after considering the investment channel and variable measurement.On the other hand,the marginal impact of cultural exchanges and the establishment of Confucius Institutes on China's OFDI depends not only on the institutional level of the host country,but also on the institutional distance.Both the increase in the institutional level and the institutional distance of the host country can significantly improve the facilitating effect of the Confucius Institute on direct investment.The conclusions of this paper indicate that the cultural exchange and the establishment of the Confucius Institute can effectively bridge the cultural and institutional gap between China and the host country.In this process,the institutional level of the host country plays a key role.Finally,this paper puts forward policy opinions from the perspective of cultural exchanges and Chinese enterprises going out.