Institutional Distance And The Export Trade Effect Of China's OFDI

By 2016,the statistics showed that China's net outward foreign direct investment(OFDI)reached a historical peak of $196 billion 250 million,continue to hold a post of Second in the world.The net output of capital has been significantly improved.At the same time,it also shows that China is gradually transforming from the capital importing country to the capital exporting country.In addition to the great development of China in the period of economic transformation,it also has some economic effects on China's balance of payments,industrial structure,technological progress and export trade.In many economic effects of above,the trade effect of home country's OFDI has always been a hot issue in the academic circle.For a country,the scale of foreign trade reflects the activity of its participation in the world economy.At the same time,it is also one of the important factors for its economic development and technological progress.The existing trade theories are based on the development of international direct investment and foreign trade in developed countries.The systematic research on international investment and foreign trade for developing countries is still relatively short.As the largest developing country in the world,whether the trade effect of foreign investment is different from that of the developed countries is worth studying in depth.The current academic circles mainly discuss the factors that affect the economic effect of China's OFDI from the angle of investment motivation or unilateral institutional factors,but the factors that affect the economic effect of a country's OFDI are multifaceted,the results from the investment motivation,or only from the host country or the home country,are biased and incomplete.Through reading,summarizing,summarizing and thinking about the existing research literature at home and abroad,combing the institutional distance to influence the theoretical mechanism of OFDI trade effect,Using the method of combining theory with empirical analysis,based on the 2004-2015 year panel data,the export trade effect of China's OFDI is empirically analyzed.Through the empirical test,it is found that China's OFDI has an obvious export creation effect.After introducing the institutional distance factor,we find that the positive institutional distance between the host country and China helps directly promote export trade,but it has a negative moderating effect on OFDI's export creation effect.Finally,from the conclusion of the study,this paper puts forward some objective suggestions from the two levels of government and enterprises to enhance the economic benefits of China's OFDI.Hoped that we can further optimize our overseas investment strategy and achieve greater economic benefits.