The Study On FDI Entry Mode Choice Of Chinese Company In The "Belt And Road" Countries

With the great advancement of the “Belt and Road” construction,China’s investment in the “Belt and Road” countries has grown rapidly,and it has occupied an important position in China’s outward foreign direct investment.According to the situation of outward foreign direct investment in recent years in China,Chinese enterprises are more inclined to cross-border mergers and acquisitions in the choice of outward foreign direct investment entry mode.However,when the number of cross-border M&As in China has grown rapidly,the number of cases in which Chinese enterprises have failed in cross-border M&A has gradually increased.Therefore,choosing the right outward foreign direct investment entry mode is critical to increasing the chances of investment success.Based on the actual situation of the countries along the “Belt and Road”,this paper analyze the factors affecting FDI entry mode choice of Chinese listed companies in the “Belt and Road” countries based on enterprise heterogeneity,and analyze the effects of these factors through theoretical and empirical analysis.Lastly,this paper attempts to provide reference of FDI entry mode selection in the countries along the “Belt and Road” for Chinese listed companies.The research includes four parts: theoretical analysis,situation analysis,empirical analysis and policy suggestion.In the part of theoretical analysis,firstly,this paper introduces the research of outward foreign direct investment entry mode choice in China and other countries and the research of heterogeneous enterprise.Secondly,this paper introduces the theory of outward foreign direct investment entry mode choice.Finally,this paper establish a theoretical model of corporate heterogeneity about outward foreign direct investment entry mode choice.In the part of situation analysis,this paper introduces the situation of China’s outward foreign direct investment entry mode choice and the situation of Chinese enterprises’ outward foreign direct investment entry mode choice in the countries along the “Belt and Road”,including the overall situation,national distribution and industry distribution,which lays a realistic foundation for the empirical analysis below.In the part of empirical analysis,this paper analyzes the 499 cases of outward foreign direct investment of China’s listed enterprises in the countries along the “Belt and Road”,and summarize outward foreign direct investment entry mode choice determinants of China’s listed enterprises in the “Belt and Road” countries.The conclusions of the study include the following aspects: First,the heterogeneous factors of the enterprise will affect outward foreign direct investment entry mode choice of China’s listed enterprises in the countries along the “Belt and Road”.The research shows that China’s listed and non state-owned companies with small productivity,large scale,the experience of internationalization,high capital intensity and big ownership advantage tend to choose the entry mode of cross-border M&A to enter the countries along the “Belt and Road”.Second,the macro factors of the host country will also affects outward foreign direct investment entry mode choice of China’s listed enterprises in the countries along the “Belt and Road”.The empirical results show that when the host countries along the “Belt and Road” countries with more difficult business,Chinese listed companies are more inclined to choose the entry mode of cross-border mergers and acquisitions,and when the host countries along the “Belt and Road” countries with large market potential,enterprises will choose the entry mode of greenfield investment.Third,the paper classifies the sample according to the location distribution of the enterprise,the investment motive of the enterprise and the three major industries.The research shows that the results of enterprises in the eastern region,market-acquisition enterprises and enterprises in the secondary industry are roughly equal with overall sample.In the part of policy recommendations,the paper finds through the above research: Enterprises should reasonably evaluate their own development after understanding the market environment of the host country,select the appropriate outward foreign direct investment entry mode according to the actual situation,reduce investment risks,and at the same time,improve the productivity of enterprises and cultivate their own core competitiveness.The government should increase policy support,reduce the cost of enterprises entering the host country market,encourage enterprises to develop corporate heterogeneity,strengthen the training of multinational management talents,and help enterprises to develop internationally.