A Research Of Analyzing How Institutional Distance Influences China’s OFDI To "One Belt One Road" Countrise

With the promotion of the economy globalization and the rapid development of the multinational corporations spreading the whole world.As a crucial part of globalization PFDI has played a significant role in making a great difference to the face of the world economy and enormous contributions to the growth of the world economy.In recent years,the studies on new policies have grown up and developed constantly.In addition to the traditional effecting factors in OFDI such as market size,trade investment policy,bilateral exchange rate,infrastructure and so on,the experts and scholars also began to bring institutional quality and institutional distance into the studies of OFDI.Additionally,the proposal of One Belt One Road Strategy in 2013 China is not only a significant part of the Opening Policy in new circumstances but also vital part of China’s Go-Global Policy.Meanwhile,the OFDI to the countries along the One Belt One Road is also a core power to propel the implement of the Policy.In this context,this article analyzes China’s OFDI location choice in the countries along One Belt One Road.So the article will bring important theoretical and practical significance.On the ground of reviewing existing studies at home and abroad,firstly,this article will analyze the influence mechanism institutional distance affects China’s OFDI location choice combine with One Belt One Road specific regional institutional environment.Secondly,the article gathers relevant investment data to analyze China’s OFDI actualities to the along countries.Thirdly,in the empirical part,this article will subdivide institutional distance into RD and ND,using transnational panel data from 2013 to 2015,picking up market size,resources endowment,technical endowment,economic environment,sign bilateral investment agreement,trade volume as the six control variables,in order to build extended Investment Gravity Model and test the effects that the two types institutional distance(RD and ND)give to OFDI location choice.And the article found that : Firstly,China’s OFDI prefer to choose location in the relevant RD closer countries.Secondly,as RD’s mechanism is so complex that the preliminary regression results cannot show whether RD’s environment between China and host countries is pros or cons.So this article analyzes OFDI’s directivity and find that : when Chinese corporations have bad RD environment,the RD’s effect is not remarkable,while on the contrary,the RD’s effect will be more apparent.In the end,ND has negative impact on corporation’s location choice.So the corporations prefer to invest the countries with less RD.Based on the above findings,propose countermeasures to our country’s OFDI from the perspective of RD and ND respectively and shorter the ND’s balance margin between them,will provide beneficial reference standard for Chinese corporations to choose One Belt One Road countries.And will help Chinese corporations to get better participation in One Belt One Road strategy.