Study On The Influence Of Host Country Political Risk On China's Agricultural OFDI Location Choice

The choice of investment location is the key link of agricultural OFDI.In addition to the analysis of the location choice of agricultural OFDI from the perspectives of host country market size,economic growth level,resource endowment,geographical distance,degree of openness to foreign investment and trade interdependence of agricultural product in the existing literature,the host country Political risk is also an important factor in the choice of agricultural OFDI location.Compared with other industries,agricultural foreign investment has received more political attention in the context of national food security strategy.The long-term cyclical nature of agricultural industry has strengthened its sensitivity to political risks,and the location choice of investors with different risk preferences is different.Under this line of thinking,this paper analyzes the location choice of China's agricultural OFDI for the political risk of the host country.Firstly,the status quo of China's agricultural OFDI development and its location selection characteristics are analyzed.Secondly,the political risk of the host country is measured and analyzed.Finally,based on the previous text,the influence of host country political risk on the location choice of China's agricultural OFDI is further theoretically analyzed.And using the data of the location of China's corporate agricultural overseas investment at the end of 2015,the Probit model empirically tested the impact of host country political risk on China's agricultural OFDI location choice.The results show that the political risk of China's agricultural OFDI distribution is relatively high,and the political risk of the host country is positively correlated with the location choice of China's agricultural OFDI.The main reason is that political risk is the entry point for enterprises to enter the strict market of the system,and the investment of state-owned enterprises is promoted by policies and guided private enterprises,and the pursuit of market and risk-return.The host country's rich natural resources,large market size and high agricultural import and export dependence attract Chinese agriculture to invest,while geographical distance restricts Chinese agriculture's investment in this location.