A Study On The Impact Of China's OFDI On Host Country's Entrepreneurship

Entrepreneurship is an important driving force for promoting economic growth in a country.All countries attach great importance to the study of the factors influencing entrepreneurship and take measures to promote the development of entrepreneurial activities in a country.At the same time,with the development of economic globalization,countries all over the world is becoming more international.China has also actively participated in the wave of economic globalization,expanded foreign direct investment,and expanded the scope and total amount of foreign investment.The existing study has analyzed the relationship between entrepreneurial activities,institutional environment,foreign direct investment and knowledge spillover.Based on the existing related study,this study subdivides OFDI into countries and based on the perspective of institutional environment,consider synthetically the relationship between the China's OFDI,institutional environment and entrepreneurship of host countries.It has opened up a new perspective on the study of OFDI's influence on entrepreneurship,and it is of great significance to the expansion of China's foreign investment and also conducive to the host country effectively use China's investment and improve the institutional environment to promote entrepreneurial activities and economic growth in the host country.This thesis combines literature research and empirical research methods,analyzed existing literature,defines the meaning of China's OFDI,institutional environment and entrepreneurship,and based on the data of Global Entrepreneurship Monitor(GEM)from 1999 to 2015,estabishing regression model,using Stata14.0 to empirically study the impact of China's OFDI and host country institutional environment on host country entrepreneurship,and also studied the regulating effect of China's OFDI on the relationship between host country institutional environment and entrepreneurial,and put forward suggestions based on the results of empirical research.The main conclusions of this thesis are as follows: First,China's OFDI has a significant impact on host country's entrepreneurship,which is mainly reflected in the spillover effect on entrepreneurship in developed economies.Second,the host country's institutional environment is promoting host country entrepreneurial activities;Third,the host country's normative environment is promoting the host country's entrepreneurship;fourth,the host country's cognitive environment is promoting the host country's entrepreneurship.Based on this,the thesis puts forward the following suggestions: For China,China should participate in the world more actively,strengthen the founction of governments' guidance and supporting;optimize the structure of foreign investment;establish a good image of China's OFDI.For the host country,the host country should improve the institutional environment;optimize the financing environment;improve the investment environment to promote the development of entrepreneurial activities.The innovations of this thesis are reflected in the following aspects: First,this thesis make China the home of investment to analyze the impact of China's foreign direct investment on the host country's entrepreneurship.It is the innovation of research perspective.Second,this thesis combines China's OFDI,institutional environment and entrepreneurship of host country.It is the innovation of research theme.Thirdly,this thesis analyzes how China's OFDI affects the host country's entrepreneurship based on the host country's institutional environment,and studies the regulating effect of China's OFDI on the relationship between the host country's institutional environment and entrepreneurship.It is the innovation of research contents.In summary,this thesis enriches existing study on entrepreneurship.