The Quality Of "The Belt And Road" National System And The Location Choice Of China's Outward Foreign Direct Investment

The institutional quality of the host country is one of the important factors affecting the location choice of OFDI in Chinese enterprises.Domestic and foreign scholars have conducted in-depth research on this.However,due to the differences in selected research objects,sample data and estimation methods,the study on the location quality of Chinese enterprises' OFDI has not yet reached a consistent conclusion.In addition,when studying the influence of the institutional quality of the host country on the location choice of China's OFDI,domestic and foreign scholars often use one or two indicators to measure the quality of the host country's system,without considering the multidimensional nature of the host country's system quality,which will result in biased research results.With the promotion of the “The Belt and Road” strategy,countries along “The Belt and Road” have become important areas for Chinese companies to invest overseas.Therefore,refining the system quality indicators and deeply studying of the impact of the national system quality along “The Belt and Road” on the OFDI of Chinese enterprises,will help us fully understand the influence of the institutional quality of the various countries along the “The Belt and Road” on the location choice of OFDI in Chinese enterprises,and provide reference for government departments to formulate and improve relevant policies.Therefore,the topic selection has important theoretical and practical significance.The focus of this paper is on the differences in the influence of the institutional quality of the various countries along “The Belt and Road” on the location choice of OFDI in Chinese enterprises.Based on the main purpose of the research,this paper uses a combination of theoretical and empirical analysis to conduct research.The full text consists of five parts.The first part is an introduction.This part mainly explains the significance of the topic,the research status at home and abroad,the research methods and content,and the innovation.The second part first analyzes the institutional quality characteristics of the countries along “The Belt and Road” from the six dimensions of political stability,government efficiency,supervision quality,rule of law rules,discourse power and accountability,and corruption control,and then analyzes the characteristics of China's direct investment in the countries along "The Belt and Road" from two aspects: investment scale and regional distribution.The third part describes the mechanism of the influence of institutional quality on the choice of location of OFDI in Chinese enterprises.The fourth part,useing the micro-data of A-shares listed in China in 2003-2015,examined the influence of the institutional quality of the countries along “The Belt and Road” on the location choice of OFDI in Chinese enterprises,and the difference of the influence of the system quality of each dimension of "The Belt and Road" on the location of the ODI in China.The fifth part puts forward some policy suggestions based on the conclusion of the full text research.Theoretical and empirical studies have found that:(1)Chinese enterprises prefer to invest directly in countries along “The Belt and Road” with poor institutional quality;(2)Chinese enterprises prefer to invest directly in countries along “The Belt and Road” with larger market potential,abundant natural resources,cheap labor costs,light tax burden and close geographical proximity;(3)State-owned enterprises and non-state-owned enterprises tend to invest in "The belt and road" countries with poor system quality,large market scale,low labor costs,and high degree of openness and close geographical proximity.However,non-state-owned enterprises do not consider the local taxation and natural resource abundance when investing directly in the countries along the “The Belt and Road”(4)the differences in the quality of the various dimensions of the countries along “The Belt and Road” have different effects on the location choice of OFDI in Chinese enterprises.Chinese companies tend to invest in countries with political stability,high government efficiency,high regulatory quality,low levels of law rules,low levels of corruption control,and low levels of democracy.