Study On Drivers And Location Factors Of Chinses Outward Foreign Direct Investment In Agriculture

The Central No.1 document implemented a major strategy about agriculture “Going Abroad” for the first time in 2007.The Central No.1 again encouraged qualified enterprises to “Go Abroad” in 2010,then The Central No.1 of 2017 suggest to accelerate the process of “Going Abroad” and strengthen international cooperation on The Belt and Road in agriculture.Apparently,the strategy of “Going Abroad” has been an important agricultural development strategy.As a main structure of “Going Abroad”,China's outward foreign direct investment in agriculture was increasing significantly after the year of 2008,whose flows was about 1 billion dollar every year,and the stock of that has been 16.56 billion dollar until the end of year of 2017.With the background of economic globalization,resource integration and capital flow has been main stream which is mainly promoted by the foreign direct investment.In order to expand the agricultural market and use the domestic and international resources,China should adapt to the main stream to support agricultural growth.Based on the present situation of China's outward foreign direct investment in agriculture,this thesis makes a theoretical analysis framework by using the theory of enterprise heterogeneity and the eclectic theory,and collates enterprise data about China's outward foreign direct investment between the period from the year of 1996 to 2015,then analyzes the influences of total factor productivity factor and location factor on China's outward foreign direct investment by using the model of negative binomial and conditional logit.The results show:(1)As a main driving factor,agricultural total factor productivity promotes the process of China's outward foreign direct investment in agriculture.(2)China's outward foreign direct investment in agriculture does not have the motivation of market seeking but with a significant motivation of efficiency seeking.(3)The international trade of agricultural goods plays an important role on the process of China's outward foreign direct.(4)The flow of China's outward foreign direct investment in agriculture is increasing with appreciation of the RMB.(5)There is a positive correlation between openness of host country and China's outward foreign direct investment in agriculture.(6)China's enterprises is tend to invest the country which signed bilateral investment treaty with China.(7)China's outward foreign direct investment has the motivation of tax avoidance.(8)China's outward foreign direct investment in agriculture flows into regions with poor environment of institution and with poor control of corruption especially.(9)China's enterprises is tend to invest the country with better control of corruption if these counties has signed bilateral investment treaty with China after the analysis of interaction term of bilateral investment treaty and corruption control.The research of this thesis gives a understanding of the law of China's outward foreign direct investment in agriculture,which is of great significance.Based on the results,in order to adapt to the main stream in world and increasing the flow of China's outward foreign direct investment in agriculture and promote and domestic growth of agriculture,this thesis provides 3 suggestions as follow:(1)Promoting growth of total factor productivity in Agriculture.(2)Increasing utilization rate of agricultural capita.(3)Strength the rapport with main countries.