An Analysis Of The Impact Of Host Country's Political Risks On Location Selection Choice Of Chinese OFDI

China has became the world second largest outward foreign direct investment(OFDI)country since surpassing Japan in 2015,with outward direct investment flow of $145.57 billion,creating a record high.12.6% of China's outward foreign direct investment stock is distributed in developing and transition economies,totaling $118.97 billion,accounting for a large proportion.Chinese enterprises will face greater political risk when investing directly in these countries.So,it is of great practical significance to study the impact of the host country's political risk on the outward foreign direct investment of Chinese enterprises.Firstly,this paper clarifies the connotation of political risk by literature research.Secondly we constructs political risk variables by referring to the "International Country Risk Guide" published by PRS(Political Risk Services Group),dividing political risk into eight dimensions including government stability,internal conflict,external conflict,legal level,religious conflicts,ethnic conflicts,government corruption and military in politics.And then based on the 1568 Chinese enterprises' OFDI data from 2005 to 2015,through the use of mixed LOGIT model,this paper makes an empirical study on the political risk,tax burden,natural resources,economic development indicators(GDP,Per GDP,the growth rate of GDP)and capital market scale of Chinese outward foreign direct investment.The study shows that Chinese enterprises' outward foreign direct investment tends to be a country with a high political risk,low tax burden and abundant natural resources.Finally,the article makes an in-depth analysis of the causes of the above results,especially Chinese enterprises tend to flow into the high political risk country in foreign direct investment.On this basis,the paper puts forward the policy suggestions to deal with the political risk of the host country for Chinese enterprises.