Analysis Of Investment Potential And Investment Strategy Selection Along The "Belt And Road"

Accurately grasping and steadily improving the investment potential of the "One Belt,One Road" countries is not only the basic premise for reducing investment risks and improving investment returns,but also the objective requirement for the steady improvement of the "One Belt,One Road" strategy.This paper defines investment potential as the "investment opportunity" which brought about by a country's economic growth and market expansion.Based on a systematic review of China's investment growth along the "Belt and Road" countries,the article uses the "gravity model" developed by Frenkel,Funke and Stadtmann to adopt panel data of 45 countries along the t"Belt and Road," in 2007-2016.The empirical test examines the factors affecting the investment potential of the "Belt and Road" countries,and tests the nine hypotheses proposed in the article,thus portraying the main factors affecting the investment potential of the "Belt and Road" countries.At the same time,the search of existing literature found that the existing research on investment potential mostly uses the idea of static equilibrium analysis,focusing on the balance between investment scale and investment space.Based on this,this paper proposes the analysis of structural dynamic equilibrium investment potential.Through the empirical analysis of the geographical(country)structure of the investment potential of the countries along the "Belt and Road",it is found that the investment potential of most countries along the line is still in the "development-oriented" and"moderate" areas,and there are different levels of investment potential.In order to reveal the intrinsic roots of the unbalanced structure of investment potential along the line,according to the basic requirements of the "investment potential matrix" method,a case study of the differences in the industrial structure along the "Belt and Road" shows that the investment potential along the line has significant Heterogeneity.The non-isomorphism of investment opportunities determines the difference in the expected net present value of investment in different countries,and the risk structure is not the same.The dynamic evolution of investment potential is one of the main contents of this paper.Based on the analysis of the positive feedback relationship between economic growth,market expansion and investment potential,the paper puts forward the concept of "investment potential multiplier" and analyzes the mechanism and manifestation of "multiplication" of investment potential.Finally,based on the above analysis results,this paper proposes relevant strategic choices from the aspects of investment subject,investment mode and investment expansion path.