Analysis On The Influence Of Overseas Chinese Emigrants On China’s Outward Foreign Direct Investment

With the continuous improvement of the level of reform and opening up and the deepening implementation of the "Going Global" strategy,Chinese enterprises have become more and more involved in global economic activities abroad.As of the end of2018,China’s foreign direct investment stock and flow data were 1982.27 billion US dollars and 143.04 billion US dollars.Chinese companies ’ transnational direct investment already has a considerable scale effect,not only the investment industry is widely distributed,but also the investment methods are more diversified.On the one hand,the development of China’s foreign direct investment ushers in huge opportunities,on the other hand Chinese enterprises are also faced with a variety of potential investment risks in the process of foreign investment.The economic and political environments of various countries in the world are different.Among them,the level of economic development,government legal construction,cultural differences,geopolitics,and natural resource endowments are all the host country’s bilateral trade,direct investment and other economic activities have an impact.This article takes overseas immigrants as the anchor point,and selects China’s direct investment flow to 55 sample countries as the research object to deeply study the impact of overseas immigrants on China’s foreign direct investment.The article uses a combination of literature analysis and theoretical analysis to sort out the research literature on foreign direct investment and the impact of immigration networks on foreign direct investment by domestic and foreign scholars,and reviews relevant literature.At the same time,to explain the immigration to foreign direct investment the impact mechanism of immigration has explained the positive role of immigration networks in promoting foreign direct investment activities of immigration source countries from three perspectives: immigrants can play ethnic advantages,reduce transaction costs,and bridge cultural distances.In addition,the article also uses status analysis and the method of combining empirical analysis.First,it introduces the development process and current status of China’s foreign direct investment from the perspectives of investment history,stock and flow,geographical and industry distribution,and the composition of investment entities,and concludes that Chin’s foreign direct investment faces political risks,cross-cultural risks,and risks caused by excessive concentration of investment locations and industries.Second,collect relevant variable data and finally select 55 sample countries,based on China’s 2005,2010,2013,2015,and 2017 FDI flow by year is used as theexplained variable,the same year the obtained overseas immigration stock is the core explanatory variable,and the remaining control variables are the sample country gdp,gdp per capita,natural resource endowment,openness level,government governance indicators,and geographical and cultural distances that do not change with time to construct investment gravity model.Use random effect model(RE),feasible generalized least squares(FGLS)and other estimation methods to conduct full sample and subsample empirical tests on the model.In two subsample regressions,the sample countries are once regression of the classifications of different economies,developing economies and transition economies,and the other is the regression of immigrants in different periods.Comparing the full sample and subsample regression results,it can be concluded that there is a positive correlation between overseas immigrants and China’s foreign direct investment.Finally,based on the previous discussion and empirical evidence,the article proposes relevant policy recommendations from the government and enterprise levels.