Study On The Impact Of The Economic System On The Location Choice Of China's Foreign Direct Investment

With the continuous deepening of the "Belt and Road Initiative" initiative,China's direct investment scale has also continued to increase.The system construction of countries along the "Belt and Road",is not sound enough,and the investment environment is not stable enough.Studying the impact of its economic system on the location choice of OFDI can provide some suggestions for Chinese enterprises to invest in selecting locations to reduce their investment risks;ensure a more rational allocation of resources and reduce transaction costs.This paper first sorts out the previous research,and then sorts out the theoretical basis of the economic system affecting OFDI,analyzes the current situation and existing problems of China's foreign direct investment in the countries along the "Belt and Road",and finally carries out the economic system of the host country.The test uses empirical conclusions to analyze the impact of the economic system of countries along the"Belt and Road" on the location choice of China's OFDI.The main findings are as follows:This paper selects the panel data of China's investment in the countries along the"Belt and Road" from 2004 to 2016,and empirically analyzes the impact of the economic system of the countries along the "Belt and Road" on the location choice of China's OFDI.The research conclusion also indicates that there is a significant impact.Among them,commercial freedom,trade freedom and investment freedom and fiscal freedom have positive positive impact on foreign direct investment in countries along the "Belt and Road",but investment freedom is not the main factor.In addition,Monetary Freedom also has a significant impact on OFDI,but it is negative.Subsequently,according to Han Derui's "general to special" stepwise regression analysis,the degree of influence of the five sub-indicators of the economic system on OFDI is compared.The most influential is the Trade Freedom,followed by business freedom,Financial Freedom,Monetary Freedom,Investment Freedom.Finally,the corresponding recommendations are given,for the government:to build an information service system for investment in the "Belt and Road"countries,strengthen friendly relations and cooperation,strengthen the construction of the security system;for enterprises:establish a corresponding risk awareness,make full use of the positive effects of the" Belt and Road Initiative" initiative,improve the system and management system of multinational enterprises.The innovation of this paper lies in:First,research perspective innovation.At present,domestic and foreign research on OFDI in the host country system is mainly legal system,political system,etc.The analysis of economic system factors is less and not detailed.Second,study situational innovation.Although some scholars have conducted relevant research on economic systems.In the context of the "Belt and Road",the influence of the economic systems of their countries along the route on the choice of China's OFDI has rarely been studied.Third,research method innovation.This paper uses the extended gravity model to test the influence of economic system on China's OFDI,and conducts a holistic and gradual regression respectively.The overall return to the economic system has a significant impact on OFDI,and gradually returns to the comparison of the five sub-indicators of the economic system.China's influence on the degree of OFDI along the"Belt and Road" countries.