Research On The Influence Of Host Country's Economic Policy Uncertainty On China's OFDI

In the new century,with the rapid development of China's economy,China's foreign direct investment has also made great progress.According to the official disclosure,China's foreign direct investment has increased rapidly in the past decade with a growth rate of 36%,and is now the world's second largest foreign direct investment country.Every year,hundreds of billions of dollars are invested in countries all over the world.It not only enables China to gain energy and technology,but also brings capital,technology and opportunities to host countries.China,who adheres to the peaceful development of the world,takes advantage of its own technical and financial advantages,and at the same time undertakes the responsibility of the great powers,and actively maintains the idea of the common development of the world.China's OFDI plays an important role in the concept and practice of China and the world.In recent years,because of the slow development of the global economy,all kinds of black swan events emerge in endlessly,especially in 2008,the American subprime crisis has caused serious trouble to the economic development of all countries in the world.After the global financial innovation and the great impetus of the Internet economy to human society,it is now in the course of the information revolution,and there are no major revolutionary breakthroughs in technological innovation.The sound of anti-globalization,a variety of terrorist attacks,the occurrence of religious conflicts,and the risk of a global system are at present.More and more.In order to cope with the complicated situation,governments around the world have strengthened the "visible hand" to intervene in the economy,and have constantly introduced various economic stimulus policies to strengthen the uncertainty of economic policy.Facing the uncertainty of the global economic policy,China's foreign direct investment is bound to be seriously affected.Therefore,it is of great significance to study the influence of the economic policy uncertainty of the host country on China's OFDI.This paper first combs the existing research results in two aspects of the uncertainty of economic policy and the influence factors of foreign direct investment,summarizes the factors that can affect China's foreign direct investment and is related to the uncertainty of economic policy,and then analyses the uncertainty of economic policy and the field of foreign direct investment.The classical theory,then combs the development course of China's foreign direct investment,then constructs the model by using the economic policy uncertainty(EPU)index measured by Baker et al.And China's 2003-2006 year foreign direct investment panel data,and empirically analyses the influence and transmitting machine of the economic policy uncertainty of host country on China's OFDI The conclusion is drawn after the analysis of the regression results,and finally the targeted policy recommendations are given.The innovation of this paper mainly includes the following two points:(1)the economic policy uncertainty(EPU)index adopted in this paper as the core explanatory variable,compared with the previous use of statistical political change,policy change and sudden major events as explanatory variables,can more accurately depict the uncertainty of the economic policy and guarantee the empirical conclusion.The objectivity and accuracy of the fruit.(2)at present,the research on the uncertainty of economic policy is mainly focused on the financial market and the macro and quiet influence,and it is less involved in the study of foreign direct investment.Therefore,the study of China's foreign direct investment from the angle of economic policy uncertainty has some innovation.