Asean Investment Facilitation Level Measurement And Its Impact On China’s OFDI

With the globalization of economy,the acceleration of regional economic integration and the vigorous development of free trade zones in various countries,foreign direct investment has become an important force in promoting the development of the world economy.By attracting foreign direct investment,China has made significant achievements in economic construction with remarkable results.Now it also has the strength of foreign direct investment.ASEAN is a regional economic cooperation organization with a large population,abundant natural resources,good economic development momentum and great potential.It is driven by the radiation effect of investment in the China-ASEAN Free Trade Area and the promotion of the "21st Century Maritime Silk Road" cooperation initiative.Under the impetus,ASEAN has become a key area for China’s foreign direct investment cooperation.Studying the issue of investment facilitation can release China’s investment potential in ASEAN,optimize domestic industrial structure,resolve excess capacity,expand opening up and innovative foreign investment.Based on the definition of the concept of foreign direct investment,this paper takes investment facilitation as the main research line,and takes ASEAN countries as the research object.By using the entropy method to construct the investment facilitation evaluation index,combined with the empirical analysis method,this paper focuses on the analysis of ASEAN investment facilitation.The impact of China on its direct investment.First of all,this paper sorts out the theory of international direct investment in developing countries,transaction cost theory and regional economic integration,as the theoretical basis of this study,and the connotation of investment facilitation,evaluation index system and the impact of investment facilitation on direct investment has been reviewed in domestic and foreign literature.Then,from the overall situation,industry distribution,and regional characteristics,the development of China’s direct investment flows and stocks to ASEAN will be explained,and analyze the main body of China’s direct investment in ASEAN.Secondly,through the system constructionof four primary evaluation indexes including infrastructure quality,information technology application,financial environment quality,regulatory environmental quality and 12 secondary evaluation indexes,the calculation of investment facilitation level is completed based on entropy method.And the ASEAN investment facilitation level is measured and analyzed.This paper finds that the overall investment facilitation level of ASEAN is general,and countries have significant differences,among which the scores of infrastructure quality and regulatory environment quality are higher,the scores of financial environment quality and the information technology application are lower.Thirdly,based on the extended investment gravity model,this paper empirically analyzes the impact of ASEAN investment facilitation on China’s direct investment.The research results show that the investment facilitation comprehensive evaluation index has a significant role in promoting direct investment.The quality of infrastructure and the application of information technology in the second-level evaluation index have an outstanding effect,and the quality of regulatory environment has an insignificant positive effect.However,the quality of the financial environment has not significantly promoted China’s direct investment in ASEAN,because China’s foreign direct investment is dominated by state-owned enterprises and funds are sufficient,so the evaluation index is not significant.However,with the increase in foreign direct investment by private enterprises,the importance of the quality of the financial environment will gradually emerge.Finally,based on the above theoretical research and empirical results analysis,this paper proposes corresponding policy recommendations on how to effectively and specifically optimize the investment facilitation level in all aspects and release China’s investment potential in ASEAN.