The Impact Of Trade Barriers On China's Outward Foreign Direct Investment

With the implementation of the "going out" strategy,more and more Chinese enterprises have gone abroad in recent years,and outward foreign direct investment and cooperation have developed rapidly.At present,it has become the world's second largest outward foreign direct investment flow country.On the other hand,while the rapid development of foreign trade,China has also suffered many kinds of trade barriers.In particular,China has been the country with the most anti-dumping investigations in the world for 21 consecutive years.The rapid growth of China's outward foreign direct investment,and the increasing trade barriers it suffers,are intrinsically linked.This is a question worthy of in-depth study.This paper focuses on the anti-dumping trade barriers to discuss the trade barriers' impact on China's outward foreign direct investment.This paper sorts out relevant domestic and foreign literature on trade barriers that affect outward foreign direct investment.In previous studies,some literature also found that outward foreign direct investment of enterprises may have the incentive to circumvent trade barriers,but there are relatively few relevant academic studies for developing countries,especially for China.This paper constructs a simple theoretical model to discuss the theoretical mechanism of the impact of anti-dumping barriers on outward foreign direct investment.Theoretically speaking,there may indeed be incentives to circumvent anti-dumping barriers in the context of outward foreign direct investment,and in 'combination with the actual economic activities,the The theoretical mechanism plays a role in China.Finally,using the multinational panel data of 178 countries from 2003 to 2015,this paper empirically tests the impact of anti-dumping trade barriers on China's outward foreign direct investment under the framework of gravitational model.Empirical studies have found that the host country' s anti-dumping measures against China have significantly promoted China' s outward foreign direct investment.This shows that outward foreign direct investment's incentive to evade anti-dumping barriers does exist;the anti-dumping effect of developed countries on China' s outward foreign direct investment is greater than that of developing countries.In addition,the paper also finds that the tariff barriers of the host country have no significant impact on China' s outward foreign direct investment,but the tariff barriers in the developed countries have a more significant impact;the differences in the recognition of the host country's market economy status in China will affect China's outward foreign direct investment.Direct investment has different effects.Finally,based on the results of theoretical and empirical research,this paper puts forward several policy recommendations on how to effectively avoid investment risks,reduce trade frictions,and make rational use of overseas resources at the level of macro-government and micro-enterprise.