Business Environment Of The Host Country And The Location Selection Of Outward FDI Enterprises

High attention to the business environment of investment countries has become the consensus of the location selection of outward foreign direct investment(OFDI)enterprises.In the meantime,in order to attract more multinational corporations to invest,many countries constantly improve the domestic business environment.Based on the empirical study on the investment project data of China's enterprises which have outward foreign direct investment in 176 countries from 2003 to 2015,we use the negative binomial regression model and find that,(1)China's enterprises which have foreign direct investment tend to invest in the country with better business environment,especially when investing in disadvantaged countries.(2)Different investment motivations of OFDI enterprises show heterogeneity preferences for different sub-categories of business environment convenience.Resource-seeking OFDI prefers the ease of dealing with construction permits and protecting investors.Export-oriented OFDI prefers the ease of enforcing contracts.Production-oriented OFDI prefers the ease of paying taxes and enforcing contracts.Technology-seeking OFDI prefers the ease of protecting investors.(3)The state-owned enterprises represented by central enterprises have "country specific advantages".The convenient business environment of host country has relatively small effect on the site selection of central OFDI enterprises,but can significantly promote the investment of the local OFDI enterprises.Using genetic distance as an instrumental variable for business environment differences and using different genetic distance estimation tools to estimate,the test results are still robust.Therefore,we should improve our "going out" public services and carry out national business environment assessment work to provide detailed sub-category business environment information for OFDI enterprises.Carry out differentiated supportive policies for different investment motivations OFDI,and strengthen the support efforts of local OFDI enterprises to promote a healthy and orderly development of China's outward foreign direct investment.