A Study On Location Choice Of Chinese Enterprises OFDI In "One Belt One Road" Countries

With the advance of "One Belt One Road" strategy,it brings many opportunities for Chinese enterprises' foreign direct investment,also promotes the enterprise internationalization growth.However,there still exists many problems,such as irrational investment of enterprises,and alternation of host country regime,especially cultural distance.It has formed the invisible investment barriers,which makes enterprises of "One Belt One Road" foreign investment frequently fail.Therefore,the paper based on the past investment experiences,reasonably analyzes the relationship between cultural distance and location choice of Chinese enterprises OFDI in the "One Belt One Road" countries from the perspective of cultural distance,hoping to offer some references to foreign investment.The paper analyzes the current situation of the scale of investment and the distribution of investment in Chinese enterprises OFDI in the "One Belt One Road" countries.By using Theil entropy method H(S)and relative entropy number P(S)to measure the Chinese enterprises OFDI in the "One Belt One Road" countries' location concentration,the destination of Chinese enterprises OFDI will be divided into two stages.Then it bases on the transaction cost,the paper builds a game model and combines "foreign advantage" with "foreign disadvantage",and superimposed effects of three aspects of cultural distance on Chinese enterprises foreign investment flows into cultural distance three stages.When cultural distance is small,it has stunted enterprises foreign investment location choice;when it is in the middle level,it has promoted enterprises foreign investment;the culture of the host country is extremely familiar with the outsiders' disadvantage faster than outsiders' advantage earnings effect of foreign investment in the cultural distance level.So it hinders the Chinese enterprises OFDI.And the paper puts forward the cultural distance and Chinese enterprises OFDI in the "One Belt One Road" countries location choice presents "S" type curve.The paper chooses 2005-2015 years' microeconomic panel data of Chinese enterprises OFDI in the "One Belt One Road" countries to build a model,and use mixed regression empirical test to further analyze the impact of cultural distance on location choice of Chinese enterprises' foreign investment.The paper examines the stability of the data.The empirical results show that the cultural distance effects Chinese enterprises along the "One Belt One Road" countries are the horizontal "S" type curve distribution,and characterized by "foreign disadvantage" — — "foreign advantage" — — "foreign disadvantage".Finally,this paper analyzes and summarizes the research results,and puts forward some counter measures and suggestions for the rational investment of Chinese enterprises from the following aspects: selecting the right target market,strengthening cultural system environmental assessment,seeking mature partners and coordinating management communication.