An Empirical Study Of The Factors Affecting China's Direct Investment In ASEAN Countries

The Bangkok Declaration was officially issued on August 8,1967,marking the formal establishment of the Association of Southeast Asian Nations(ASEAN).On the one hand,ASEAN and China have great similarities in traditional habits,cultural customs and value orientations.On the other hand,ASEAN countries and China have their own advantages in industrial structure,resource endowment and strong complementarity.The prospects for their cooperation and development are very broad.Since the establishment of dialogue relations in 1991,the leaders of China and ASEAN countries have made great efforts to improve and develop friendly relations between China and ASEAN countries and promote win-win cooperation among them.The proposal of the "the Belt and Road Initiative" is undoubtedly a good catalyst.There is a lot of agreement between the contents of the infrastructure Unicom and ASEAN's general plan for interconnection 2025.In this context,China's investment and trade cooperation with ASEAN countries is pragmatic and in-depth,developing very rapidly,forming a good situation of mutual benefit and win-win situation.In2017,the trade volume between China and ASEAN reached 5.148.20 billion US dollars,and the cumulative total two-way investment has exceeded 200 billion US dollars.In addition,with the deepening of bilateral economic and trade cooperation,the investment field of Chinese enterprises in ASEAN countries has gradually expanded from wholesale,mining,manufacturing to telecommunications,water supply and other industries.However,ASEAN countries have different national conditions and different investment environments.It is very important for investors to know ASEAN countries' investment well and make corresponding countermeasures.Based on this,this paper studies the influencing factors of Chinese enterprises' direct investment in ASEAN countries,in order to provide corresponding guidance and suggestions for international investors' investment activities.After describing the research background based on this paper,firstly,the research results of various scholars on gravity model,investment environment of ASEAN and China's direct investment environment of ASEAN in recent years are carefully sortedout.Secondly,the theoretical basis of the article is elaborated in detail,so that the research results of the article are more convincing.Then,the investment environment of China's direct investment in ASEAN countries is analyzed in detail from five perspectives: political and legal,economic,social and cultural,natural environment and technical conditions,and the current situation and existing problems of China's direct investment in ASEAN countries are analyzed.Finally,based on the data of China and ASEAN from 2003 to 2017,this paper constructs an expanded gravity model based on the investment environment of ASEAN countries,and conducts an empirical study on the influencing factors of China's direct investment in ASEAN.The empirical results show that China's direct investment in ASEAN countries is positively related to the political stability and corruption control of ASEAN countries.Among them,China's direct investment in ASEAN countries is more affected by the level of corruption control in the six old ASEAN countries than the four new ASEAN countries,while the four new ASEAN countries are more affected by political stability than the six old ASEAN countries.The scale of the market is positively correlated with the unemployment rate and the level of infrastructure construction in ASEAN countries,in which China's direct investment activities in the six old ASEAN countries are less affected by the market size of the host countries than those in the four new ASEAN countries,and are more affected by the unemployment rate and the level of infrastructure than those in the four new ASEAN countries.Moreover,China's direct investment in the four ASEAN countries is more affected by natural endowment level than in the six old ASEAN countries;it is positively related to the technological conditions of the ASEAN countries,but the regression coefficient of the technological conditions of the four new ASEAN countries is smaller than that of the six old ASEAN countries and is not significant,indicating that China's direct investment in the new ASEAN countries is less affected by its technological level and China's.The negative correlation between the market size and the economic distance between China and ASEAN countries indicates that the farther the economic distance between ASEAN countries and China is,the less direct investment it has in China.The implementation of the "the Belt and Road Initiative" has a significant role inpromoting China's direct investment in ASEAN,and the direct investment in new ASEAN four countries is affected by the "the Belt and Road Initiative".The main reason is that the "the Belt and Road Initiative" is more suitable for ASEAN's four new countries with poor economic development level.Finally,according to the conclusions of this study,the corresponding policy recommendations are put forward:first,the government level.We should strengthen investment insurance for multinational enterprises,strengthen cultural exchanges with ASEAN countries,and strengthen supervision over multinational enterprises.Second,the enterprise level.We should flexibly utilize the Chinese resources of ASEAN countries,be good at grasping the business opportunities generated by the "the Belt and Road Initiative",optimize the investment structure of ASEAN,enhance the ability of enterprises to resist political risks,establish a good corporate image and enhance the competitiveness of products.