Research On OFDI Entry Model For Chinese Enterprises In The Background Of The Belt And Road

In this paper,we explored factors which affect the choice of Chinese companies'outward foreign direct investment entry mode.On the one hand,the ownership of Chinese enterprises,R&D capabilities of Chinese enterprises and the scale of Chinese enterprises were the micro factors.On the other hand,the control of the target country's government,the cultural distance between the target country and China and the market potential of the target country were the macro factors.Taking the cross-border mergers and acquisitions data of Chinese enterprises from 2008 to 2017 as a sample,those were empirically analyzed and compared using the Logit regression model about the factors affecting the choice of outward foreign direct investment of Chinese enterprises before and after the Belt and Road Initiative and the differences between different kinds of target country which can be divided into two kinds according to whether it belongs to the countries along the Belt and Road after the Belt and Road Initiative.The Logit regression results show the following aspects.First,the ownership of Chinese enterprises,R&D capabilities of Chinese enterprises,the control of the target country's government,the cultural distance between the target country and China,the market potential of the target country as well as whether the host country's market is along the Belt and Road Initiative have significant impact on the choice of Chinese companies'outward foreign direct investment entry mode.Second,the proposal of the Belt and Road Initiative has weakened the positive correlation between the factor of the enterprise and the possibility of the Chinese enterprise entering the host country market through the joint venture model,and deepened the positive correlation between the factor of whether the host country is a country along the Belt and Road Initiative and the possibility of the Chinese enterprise entering the host country market through the joint venture model.Third,after the Belt and Road Initiative,there are differences in the choices of Chinese companies for outward foreign direct investment entry models for countries along the Belt and Road Initiative and other countries.