Research On Motivation And Generalized Distance Factors Of China's OFDI In The "Belt And Road" Countries

"Belt and Road" means the "Silk Road Economic Belt" and the "21st Century Maritime Silk Road" respectively.Under the background of the profound readjustment of the international order and the deepening reform by China in all aspects and the promotion of the task of "Three reductions,one lowering and one compensation",President Xi Jinping proposed the construction of an important strategic concept of building the "Belt and Road ",which was quickly adopted by the international community and continuous attention has been given to positive responses from the relevant countries.In the process of building the "Belt and Road" strategic concept,China's foreign direct investment in this region will provide a good opportunity to carry out international capacity-production cooperation and enhance the "going global" pattern,as well as the top priority of building a mutually beneficial and win-win relationship among all countries along the “benefit community”.Based on the theories of international investment motivation and the research at home and abroad,this paper firstly propose four hypotheses that affect China's direct investment in the "Belt and Road" countries,and then use the panel data of 30 countries along the "Belt and Road" of 2003-2015 to analyze the “robust”investment incentives on China's OFDI along the Belt and Road.The EBA(extreme boundary analysis)model is applied to explore the robustness influences.Results show that the host country's investment basis,trade links,natural resource endowment(fuel)and labor resources endowment have a positive interference and a“robust” effect on the Outward Foreign Direct Investment in China;then the extended gravity model of return through the GMM method is used to further verify the impact of generalized distance factors on China's direct investment in the "Belt and Road" countries.The results show that the economic distance and cultural distance have significant negative impact on China's direct investment in the countries along the "Belt and Road",while the geographical distance and system distance have no significant affection.It verifies influence of the generalized distance factor on direct investment in the countries along the "Belt and Road".Finally,some corresponding policy recommendations based on the empirical conclusions are put forward: 1)to strengthen the government guidance to support enterprises to going global;2)to accelerate the interconnection of infrastructure;3)to make full use of the advantages of all countries and build win-win cooperation;4)togradually narrow comprehensive distance between China and the countries along the line.Provide empirical evidence and decision-making support for China's government agencies and related enterprises to make effective foreign investment policies.