The Location Decision Of Enterprise Ownership And OFDI

With the deep integration between China and the world's economy,there are more and more opportunities for Chinese enterprises' outward foreign direct investment,and their speed and intensity are increasing.The “One Belt One Road” initiative and the “going out” strategy have continued to advance the outward foreign direct investment of Chinese enterprises into a period of golden growth,not only state-owned enterprises,but also various private enterprises have also participated in direct foreign investment,and gradually formed a new pattern of “two-wheel drive” with state-owned enterprises.However,in the current situation of complex and volatile investment environment at home and abroad,both the state-owned and private enterprises in China face different degrees of investment risks in the process of outward foreign direct investment,at the same time,different types of investment entities have different types of policies,different goals for going out,and different levels of policy constraints and support at home,the location decision of its outward foreign direct investment must also be different.Therefore,it is of great theoretical and practical significance to explore the location decision of the ownership of enterprises and outward foreign direct investment in the current situation.This article is from the macro and micro levels summarizes and analyzes the previous research results on the location decision of outward foreign direct investment by Chinese companies,the research methods using literature analysis and the combination of theoretical and empirical analysis methods,based on the theory of international direct investment in developed and developing countries,theoretical analysis and current status analysis of the location selection of outward foreign direct investment,based on the perspective of differences in enterprise ownership,empirical analysis was conducted on the decision-making of state-owned enterprises,private enterprises,and foreign companies,investigate whether the factors affecting foreign direct investment decisions of different ownership companies are the same and whether the impact degree is the same.The empirical analysis finds that multinational corporations are more in line with previous scholars' research conclusions in the decision to invest in developing countries and “One Belt One Road” countries,all three types of companies tend to choose hostcountries with larger market sizes.At the same time,in the process of developing foreign direct investment by private enterprises and foreign enterprises,it focuses on investing in host countries with lower labour costs,less political risk and relatively complete infrastructures,but state-owned enterprises are not sensitive to these factors,and the risk aversion awareness is weak.Compared with these two types of enterprises,the outward foreign direct investment of state-owned enterprises considers the national strategy more,Mostly in developing countries rich in natural resources or countries along the “One Belt One Road” investment.In the selection of outward foreign direct investment locations in developed countries,there are significant differences from expectations,in addition to market-seeking motives and technology-seeking motivation features,shows strong motivation for natural resource seeking.In addition,the generally higher labor costs in developed countries and the worsening of the political and institutional environment after the financial crisis have also affected the location decisions of various enterprises in China for direct investment in advanced economies.