The Research On The Influence Of Environmental Regulation On Location Selection Of Chinese Enterprises OFDI

As China comprehensively deepens reform and opening-up,OFDI of Chinese enterprises has entered a stage of rapid development.With the rapid growth of Chinese enterprises OFDI,the environmental regulations of host countries have become one of the important factors affecting the location selection of Chinese enterprises OFDI.If Chinese enterprises need to obtain higher economic benefits under the constraints of environmental regulations,they must plan for OFDI location selection in a more reasonable way.As host countries around the world gradually raise awareness of environmental protection,the potential associated with past pollution-intensive industries Environmental problems have been attached great importance to by the local government and the masses.Therefore,the host government began to formulate stricter environmental regulations.In the process of attracting OFDI,the host country should pay attention to both economic development and ecological environmental protection.It can be seen from the data that the environmental regulation level of most host countries presents a trend of gradual improvement.In this context,it is particularly necessary for China's OFDI location selection to study the potential changes in the environmental regulations of the host country.Moreover,there are some differences in the level of economic development and environmental regulation in the host country itself,and Chinese enterprises face severe environmental regulation in the course of the development of foreign direct investment.Therefore,it is important to study the influence of the environmental regulation of the host country along the "Belt and Road Initiative" on the location choice of Chinese enterprises' OFDI,which will be of great theoretical and practical significance to the Chinese enterprises' OFDI.The innovations of this paper can be summarized as the following three points:First,this paper attempts to explore the relevance of Chinese enterprises' OFDI location selection from the perspective of environmental regulation;Secondly,this paper sets China's OFDI stock as a substitute variable for Chinese enterprises' OFDI location selection,and the environmental performance index is set as a substitute variable for environmental regulation,and uses the classic trade gravity model to empirically explore that the Influence of Environmental Regulation on Location Selection of Chinese Enterprises OFDI;Thirdly,this paper uses the systematic GMM method of measurement software Stata to conduct empirical test,which analyzes the influence of environmental regulation on the location selection of OFDI in Chinese enterprises,and sets up multi-collinearnty test and robustness test to ensure the credibility of empirical results.According to the results of this study,in the face of different levels of environmental regulation in different host countries,suggestions for the location choice of Chinese enterprises are as follows:Improving the corporate strategy of Chinese enterprises' OFDI;Promoting the industrial structure of Chinese enterprises'OFDI;Improving the location selection of Chinese enterprises' OFDI.