Research On The Influence Factors Of Chinese Direct Investment In Latin America

As the global economy is changing,economic globalization is becoming more and more obvious,trade and investment between countries are becoming increasingly close.Outward Foreign Direct Investment has become an increasingly important economic part of economic globalization.Since China's reform and opening up,China has actively communicated with each other.With the rapid development of the Chinese economy China has made some achievements in outward foreign direct investment.In 2016,China's Outward Foreign Direct Investment volume was $196.15 billion,up 34.7% from last year,ranking the second highest in the world.The stock of Outward Foreign Direct Investment was $1357.39 billion us dollars,ranking sixth in the world.In the 1970 s,China began to conduct trade and investment exchanges with countries in Latin America.The relation between China and Latin America is very friend.China has become a good partner of Latin American countries.The investment relationship between China and Latin America is becoming more and more mature.With increasing investment and trade,China has become Latin America's second largest trading partner and an important source of investment.In 2016,China's direct investment volume in Latin America was us $27.23 billion.That was up 115.9 percent from last year,accounting for 13.9 percent of total investment.The stock of direct investment in Latin America was $207.15 billion,accounting for 15.3 percent of total.Along with China's increasing direct investment in Latin America,there are many problems in the investment process.The literature on China's direct investment in Latin America is very small.It is necessary for us to study the factors that influence China's direct investment in Latin America.This article is based on the general theory of foreign direct investment and the theory of foreign direct investment in developing countries.Through the analysis and comparison of the current situation of direct investment in Latin America,we find that the total amount of investment is relatively small,the investment area is unevenly distributed,and the investment technology is increasing low.In order to study what influence can truly affect China's direct investment in Latin America,and how the influence degree,this paper combined with the actual situation of Latin American countries and domestic situation to analyze the foreign direct investment theory of motivation.This paper makes an empirical analysis from three perspectives of host country,domestic and Latin American tax avoidance region.The Cayman islands in Latin America and the British virgin islands have tax incentives that are too obvious.It is necessary to carry out an empirical study on it.According to the regression analysis,the economic development of the host country has a significant impact on the direct investment.The domestic economic situation is also significant for direct investment.When Latin American countries or regions have certain preferential tax policies,they will attract most of our investment.Preferential tax policies have become an important factor affecting China's direct investment in Latin America.In the future,China will invest in Latin America to make good investment location,diversify investment,and strengthen risk prevention and self-construction.