The Influence Of China's International Student Education On China's OFDI

Since the reform and opening up,China's participation in economic globalization has been accelerating.In particular,in recent years,China's outward foreign direct investment(OFDI)has developed rapidly and China has become a major country of foreign direct investment.Among the factors affecting the development of OFDI in China,the rapid development of foreign students' education in China has had a certain impact on the economy in recent years.Therefore,in this paper the influence of China's international education on China's OFDI is analyzed.Based on the panel data of China's 31 provinces(except Hong Kong,Macao and Taiwan)and municipalities from 2007 to 2016,this paper studies the impact of China's international student education on China's OFDI,using feasible generalized least squares(FGLS)and panel correction standard errors(PCSE).The empirical test shows that China's international education can significantly promote China's outward foreign direct investment(OFDI);in the promotion there are significant regional differences,and the impact on the western region is more particular;the influence of China's international degree education on OFDI have a certain lag;similarly,the scholarship policy cannot promote the growth of China's OFDI.Therefore,to facilitate “Going out” strategy and the “Belt and Road” initiative,the government should encourage international education,especially in the western region.The recruitment scale of non-degree students can be expanded.Finally,government is suggested to reduce the scale of scholarship,and to allocate it on education quality and international promotion,so as to attract more international students by the quality of education to promote the sustainable growth of OFDI.