Research On The Location Choice Of China's Outward Foreign Direct Investment In “Belt And Road” Countries

Along with the trend of deepening economic globalization,the Chinese government has creatively proposed the Belt and Road Initiative(BRI).The purpose of BRI is to strengthen the links among Belt and Road(B&R)countries,not only in economy,but also including politic,culture and so on,in order to achieve win-win cooperation.As an important carrier to implement BRI,international direct investment can promote the rational flow of resources and benefit economic growth of B&R countries.Location selection is an important part of the investment process and plays an important role in the success of investment.Under the background of BRI,it is helpful for Chinese enterprises to carry out foreign direct investment in B&R countries more effectively by deeply exploring the current situation,influencing factors of location choices of China's outward foreign direct investment in B&R countries,as well as the location advantages of B&R countries.According to the data of China's outward foreign direct investment,a comprehensive analysis of current situation of China's outward foreign direct investment in B&R countries shows that China's investment performance in B&R countries is characterized by large scale,rapid growth,small proportion,and uneven investment flow.Investment funds mainly flow to Southeast Asian countries and developing countries.Based on the expanded investment gravity model,the panel data model is established based on the indicators of B&R countries in 2008-2017,to empirically examine the influencing factors of China's direct investment location selection in B&R countries.The results show that natural resource endowment,market scale,scientific research capacity and political environment stability of the host country are positively correlated with the location choice of China's direct investment in B&R countries.The host country's labor cost,infrastructure level and geographical distance are negatively correlated with the location choice of China's direct investment in B&R countries.Geographic distance and market size are the two most significant factors.Based on different investment motives,14 indicators were selected from 7 dimensions to construct a set of index evaluation system,and empirically examine the location advantages of B&R countries.Through factor analysis,it is found that India has the strongest comprehensive location advantage.The Ward clustering method is used to divide the sample countries into four groups that havedifferent location advantages.Enterprises can combine their own investment motives and the location characteristics of each group to develop foreign direct investments.Based on the above analysis results,the following five suggestions are proposed: according to the location advantages of the host country,implement differentiated investment strategies;optimize the investment layout in B&R countries and guide enterprises to occupy investment sites;support the operation of information service platforms;innovate financing channels and improve financial service systems;strengthen cultural exchanges and reduce investment culture risks.