The Study About The Influence Of Host Country's Institutional Factors On China's Foreign Direct Investment Location Choice

Since The "go global" strategies has been implemented,more and more Chinese enterprises have accessed to the wave of Outward Foreign Direct Investment(referred to OFDI).The study of OFDI also has been concerned by the domestic and foreign scholars.But the mainstream of international direct investment theory are mainly about multinational companies in developed countries,so the explanatory power is limited when studying China's foreign direct investment.This paper is based on absorbing domestic and foreign research,focusing on the impact of host country's institutional environment on China's OFDI.But unlike most of the institute,this paper further investigation on the basis of the Investment Motivation binding effect of institutional factors,hoping provides some suggestions on the location choice of Chinese enterprises to "go golbal".Firstly,the paper combes existed research results on the basis of theoretical analysis and propose some relative hypotheses.Next,the paper selects 2004-2014 years,China attracted the most foreign direct flow of 69 host countries for the study,using the Heckman two-stage model,from the dual perspective of the home country and the host country investment motives of the institutional environment,comparative analysis of China in both developed and developing regional differences in the selection and distribution between countries,Chapter ? of the theoretical hy potheses.The results showed that,(1)whether in developed host country or developing country,Chinese OFDI are botn having the motivation to seek markets and resources,but motivation to seek only in developed countries have clear strategic assets;(2)developing countries institutional environment and willingness to invest in Chinese OFDI are negative correlation,while in developed countries,its good institutional environment for Chinese OFDI has a significant role in promoting;(3)the system from the host country between China and developed have a positive effect on its OFDI investment options and the size of China and the development of regulatory regimes distance between the host country and its OFDI investment choices are negatively correlated,but bilateral positively correlated with distance control system;(4)in favorable institutional environment host developed country,market,natural resources,strategic asset-seeking Chinese OFDI positively correlated with the institutional environment,but poor institutional environment in developing economies,Chinese companies motivation to seek markets,natural resources and institutional environment are negatively correlation,that these two types of investment preferences system worse countries.Finally,according to the results of theoretical analysis and empirical test of policy recommendations,the paper make policy built form both the business and government fort he location selection ofchinese overseas direct investment.