| With the continuous development of China's economic and trade and the continuous promotion of the going out,China's foreign direct investment has grown rapidly in recent years.However,foreign direct investment can help enterprises avoid trade barriers,it also brings a lot of risks to its transnational operations.Among all the risks,political risks represented by terrorist attacks,civil strife,changes in government power,and policy discontinuities are the most extensively destructive.However,some scholars have found that in many areas with frequent political risks,China's foreign direct investment is more attractive,which is obviously contrary to the traditional foreign direct investment theory.This paper firstly sorts out the status quo and characteristics of China's investment in African countries,and combines the political risk performance of Chinese enterprises with the foreign direct investment panel data of 32 representative countries in Africa in 2007-2016,taking the political risk of the host country as the main research object,the political risk indicators of four political risk expressions encountered in China are selected as independent variables to study the impact of political risk on China's foreign direct investment.From the empirical results,political risk has a negative impact on China's foreign direct investment.The regression results of the host government's stability and external conflicts are significant and have a significant impact.The host country's internal conflicts are not significant,but the signs are positive.It is the type of political risk that Chinese enterprises choose to evade;while host country corruption shows positive effects on China's OFDI.In general,Chinese companies tend to evade political risks in foreign direct investment.Because of the strong destructive power of political risk,this paper puts forward the risk prevention countermeasures for how to avoid political risks from the macro and micro perspectives. |
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