Study On Location Choice Of China's Direct Investment In Indo-China Peninsula Countries

China is shifting from a major recipient of foreign direct investment to a major exporter of capital.Indochina countries in geopolitical strategy sense "area" is not only an important hub,and it is an important part of the ten ASEAN countries saw,at the same time,as is adjacent to China's neighboring countries,studies China's OFDI location choice in Indochina countries,for the Chinese multinational enterprises with international production investment strategy formulation provides reference significance of reality.At the same time,with the development of new institutional economics,it is an attempt to analyze the relationship between institutional distance and China's location choice of foreign investment,which is of great theoretical significance.Firstly,this paper reviews relevant literatures at home and abroad,including relevant concepts of institutional distance,classification standards of institutional distance,measurement methods of institutional distance,influencing factors of OFDI location selection,relevant theories and empirical analysis.Secondly,on the basis of previous studies based on the analysis of location selection of China's investment in Indochina,discusses the investment scale,regional differences,industry distribution and four sorts of internal investment patterns and then according to Indochina system indicators of the level distance is calculated with the Chinese system,investigates the rule of law system of distance and distance on Chinese economic system and the influence of Indochina national investment mechanism.Finally,the panel data of China's OFDI stock in six countries on Indo-China peninsula from 2003 to 2017 were selected,and the Eviews8.0 measurement software was used to establish an extended investment gravity model.The empirical study was conducted on the relationship between the institutional distance between countries on Indo-China peninsula and China and the location selection of Chinese multinational enterprises,and the following conclusions were drawn:On the one hand,the distance between the rule of law system,micro-economic system and geographical distance between China and Indo-China peninsula countries are negatively correlated with China's OFDI stock,which indicates that the institutional distance will hinder the development of investment.On the other hand,macro-economic system distance and market size are positively correlated with China's OFDI stock,that is,the greater macro-economic system distance between home country and host country is,the larger the market size will be,and the more investment from multinational companies will be.The actual regression results of the model are basically consistent with the theoretical expected results.In addition,the empirical models show that the distance from the rule of law system,economic system and other formal institutional factors as explanatory variables significantly,but the traditional informal institution,such as geographical distance,the size of the market is still important factors as control variable,and traditional factors and has an important relationship between foreign direct investment location choice,should not be neglected.