The Impact Of Political Risk And Bilateral Political Relationship On China’s Outward FDI

With the strategy of "going out",China’s foreign direct investment is developing rapidly.In 2015,China’s outward foreign direct investment flows set a new record of $145.67 billion,is second only less to the United States,for the first time at the top of the world’s second.In May 2014,Xi jinping,the chairman formally put forward the “B&R” during the CICA summit in Shanghai,as China’s first,top drive national initiative,its importance is self-evident.China’s outward foreign direct investment will continue to remain strong in the future;and investment in the "B&R" countries will be a new growth engine.In this paper,the object of study concentrated on the OFDI to "B&R".According to the 2003-2014 China’s panel data of the main 43 countries all the way along " B&R ",using the panel correction error(PCSE)to estimate,focuses on the influence of the political risk of the host country and the bilateral relations on China’s OFDI,and samples can be divided into "Marine silk road" and "silk road economic belt" to compare the similarities and differences between two lines.Main conclusions are as follows: the Chinese OFDI tend to countries with higher political risk,rich in natural resources,good relationship and nearly cultural distance;the reason Chinese OFDI biased towards the high political risk countries is that the host country is rich in natural resources and good relations with the host country;the bilateral political relations with China’s OFDI significant positive correlation;cultural distance 、resources and trade dependency have different influence on "Marine silk road" and "silk road economic belt".