Research On The Impact And Countermeasures Of Risk Of Countries Along The Belt And Road On China's OFDI

Chinese president Xi Jinping proposed the Belt and Road Initiative(B&R)in 2013 and increasing outward foreign direct investment(OFDI)of China's enterprises in the B&R countries,which is conducive to achieving complementary advantages and creating win-win situation between China and countries along the Belt and Road.But China's enterprises “going out” to participate in outward foreign direct investment also face enormous investment risks.Therefore,from the perspective of risk prevention,it is of great practical significance to study the impact of risks of countries along the B&R on China's OFDI.Adopting the panel date of 29 countries along the B&R from 2003 to 2016,this paper empirically examines the impact of the host country's risk on China's OFDI from the perspectives of total risk index of the whole sample,the risk sub index and sub-regional risk sample.The empirical research finds that:(1)China's enterprises has a risk appetite for investment in countries along the Belt and Road,which is mainly reflected in the political risk appetite.while the economic and financial risks of countries along the B&R have no significant impact on China's OFDI.(2)Furthermore,the risk sub index regression shows that China's OFDI is evasive to corruption risk,debt service ratio risk and international liquidity risk,and there are risk appetite for exchange rate stability risk and law and order risk.(3)There are differences in the impact of national risk on China's OFDI in different regions.Chinese enterprises have a political risk appetite for investment in West Asia and North Africa,but economic risk and financial risk restrict their investment enthusiasm;they have economic risk appetite for investment in ASEAN and South Asia;they have financial risk appetite for investment in South Asia and Central and Eastern Europe.(4)The impact of risk of countries along the B&R on China's OFDI has time continuity;Geographical distance inhibits the enthusiasm of Chinese enterprises in OFDI,and the economicdevelopment factors of the countries along the B&R have a significant positive impact on China's OFDI.Based on the research conclusion,this paper puts forward targeted policy suggestions to reduce the risks of enterprises' OFDI and stimulate the vitality of enterprises' OFDI from the national and enterprise levels.