Research On The Promoting Role Of Educational Exchange In China's Foreign Direct Investment

Since the "one belt and one way" initiative was put forward,China's investment in the countries along the border has exceeded $80 billion.China's large-scale foreign direct investment(FDI)has brought a large number of employment opportunities to countries along the line.However,due to the different levels of development and diverse cultures of the countries along the line,the contradictions and frictions in the process of economic cooperation are unavoidable,which brings great difficulties to the investment and operation of multinational enterprises in China.Through the interaction of knowledge,ideology and culture,educational exchanges can form links between different countries and groups,ease the obstacles to international economic cooperation caused by informal trade barriers.However,due to the abstraction of the concept of educational exchange,it is difficult to quantify its impact on China's foreign economic development,so the existing literature lacks of research on the cross-domain impact of the two.The students coming to China along the "one belt and one way" are the cultural exchange envoys of China and its mother country.Confucius institutes go abroad to run schools and spread Chinese culture to all the local residents along the line.Both are forms of educational exchange.Therefore,the scale of Chinese students and the number of Confucius institutes in the future will serve as a quantitative indicator of educational exchanges." It is of great significance for us to further understand the impact of educational exchanges on the economy by discussing whether the educational exchanges in the countries along the line have promoted the direct investment in the countries along the line.Based on the analysis of the mechanism of educational exchange promoting China's foreign direct investment,combined with the current situation of the countries along the belt and the reality of China,the research hypotheses are put forward.Then,the OLS,LSDV and IV-GMM models are applied to the panel data of China's foreign direct investment(FDI)in 56 countries along the "one belt and one road" step by step,and the situation is discussed and discussed separately.An analysis is conducted to verify the research hypothesis and the robustness of the results is tested to ensure the reliability of the conclusions.Firstly,the traditional investment gravity model is established.On this basis,the scale of foreign students coming to China is added as a variable.The scale of foreign students lagging behind one and two periods is used as a tool variable in the current period.The results show that the scale of foreign students coming to China can promote China's direct investment in the home country of students.Secondly,the number of Confucius institutes and their interaction with the scale of study in China are introduced into the above models in succession.Before and after the implementation of the strategy of "one belt and one road",this paper finds that the Confucius Institute and the overseas education in China have promoted China's foreign direct investment through educational exchange.After the "one belt and one road",The role of Confucius Institutes in promoting China's foreign investment is no longer obvious.The positive role of overseas students in promoting China has become even greater.Then,according to the different development levels,we conduct a sample analysis of 56 countries along the "one belt and one road".We find that the exchange of education with the very least developed countries has the greatest effect on China's outward FDI,and it has shown a strong positive effect both before and after the "one belt and one way" strategy.The role of the "one belt and one way" strategy is no longer significant;while the establishment of Confucius institutes in developed countries is not very significant in promoting China's foreign direct investment.Finally,this paper discusses the different roles of educational and cultural exchanges in China's outward foreign direct investment in ASEAN and central and Eastern European countries.It is found that before the "one belt and one road" proposal,the role of educational exchange in promoting FDI in central and Eastern Europe is not obvious.Promotion has continued and strengthened,becoming very significant in Central and Eastern European countries,and the effect of investment promotion is greater than that of ASEAN countries.As mentioned above,educational exchange is a booster for ensuring the sustainable development of "one belt and one way" construction.By establishing stable links between China and the countries along the border,it alleviates the negative impact of the informal trade barriers on economic activities,thereby reducing investment costs and promoting China's foreign direct investment in the countries along the border to a certain extent.Therefore,China should continue to deepen its interaction with the educational culture along the "one belt and one road" line,and promote the common aspiration of the people so as to achieve genuine interconnection.