Study On Influencing Factors In Location Choice Of China'S OFDI To Asean

Since the establishment of the strategic partnership in 2003,the investment cooperation between China and ASEAN has achieved fruitful results.China is not only an important investment destination,but also an important source of FDI in ASEAN.With the implementation of the Belt and Road Initiative,Chinese enterprises are accelerating the pace of investment in ASEAN.In this process,the reasonable choice of investment location is the prerequisite for the successful overseas investment.On the other hand,with the establishment of the "Asean Economic Community",the increasingly close economic ties of ASEAN member countries may also affect China's investment activities in ASEAN.On the basis of reviewing the relevant theories of location choice of international direct investment,this paper investigated the history and current situation of China's investment to ASEAN firstly.We consider that the development process of China's direct investment to ASEAN consists of four stages,which are the exploration stage,the initial stage,the rapid development stage and the new period under The Belt and Road initiative.And China's direct investment stock in ASEAN has formed two agglomerations with Singapore,Indonesia and Laos as the center.After analyzing the main factors that affect the location choice of OFDI,we use dynamic factor analysis to calculate the development level index of ASEAN members' infrastructure.Finally,the panel spatial autoregression model is used to examine the main factors that influence China's OFDI location selection in ASEAN.We find that there a significant spatial effect on China's OFDI to ASEAN and the coefficient of space lag is 0.538.The market size,human capital,natural resources,investment openness and financial development level of ASEAN countries have a significant positive impact on China's OFDI to ASEAN.Contrary to expectation,the impact of the infrastructure development is significantly negative.In addition,institutional factors are also an important factor affecting FDI from China to ASEAN.However,we did not find obvious evidence that trade and labor supply affect China's OFDI in ASEAN.At the end of the paper,some suggestions on the location selection of China's direct investment in ASEAN are put forward.