| Along with the advance of 'the Belt and Road Initiative' strategy,Chines OFDI advances to the broader region and field.China's economic and trade cooperations with Africa shows a trend of rapid development.The convening of FOCAC and G20 summit reflects Chinese interest in African markets.Under the guidance of 'the Belt and Road Initiative' strategy,more and more Chinese companies has entered the market and conducted investment activities.In this process,location choice is definitely a key issue for all companies.Among the vital factors which affect firms'location choice,'institution' is of great importance.How do institutional environment and institutional distance affect Chinese firms in Africa?For firms which have different motivations,what about their reaction to institutions?These questions need to be solved.Therefore,to verify the active mechanism of 'institutions',we need to research theirs influence on Chinese firms in Africa.It is helpful for companies to specify investment targets and control risks.This article is divided into 7 chapters which combine theoretical research and empirical analysis,talking about institutions' influence on Chinese OFDI's location choice in Africa.This paper chooses 43 African countries' data from 2005 to 2014 to establish the econometric model,and research the impact of institutional environment and distance.Institutional factors are consist of two dimensions-political institutions and economic institutions.Using the general model,this paper finds that Chinese firms in Africa favor countries with better institutional environment as a whole.In addition,they prefer to choose countries with greater distance from both political and economic perspective.Via interactive model,this paper finds that market-seeking firms and resource-seeking firms have different preference about institutional environment and distance.Given the test outcome,this article makes some suggestion to the government and companies at the end. |
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