A Research On The Influence Of Institutional Distance On China's Direct Investment To "the Belt And Road"

Since China proposed the "Going out" strategy,China has increasingly become a more open country,and the scale of foreign direct investment have been continuously improved.At present,China has become the third largest country in the world in terms of foreign direct investment stocks,second only to the United States and the Netherlands.In order to further enhance China's overall opening-up strategy and foreign direct investment level,and accelerate industrial transformation and upgrading,China proposed “the Belt and Road” strategy in 2013.Since then,China 's investment enthusiasm in “the Belt and Road” has risen unprecedentedly,and it has also become an important strategy to promote the overall development of China 's foreign direct investment.However,the efficiency of China's foreign direct investment is not high,one of the main reasons lies in the wrong choice of investment location.There are many factors that affect the location selection of foreign direct investment.In addition to traditional factors such as natural resources and economic scale,the institutional distance has become one of the important hot spots affecting a country's foreign direct investment in recent years.This paper selects 47 countries along “the Belt and Road” as sample countries,and uses 2007-2017 as the sample period to conduct research on the measurement of institutional distance and its impact on foreign direct investment.First of all,based on the summary of the existing literature research,this paper makes a review of the research and summarizes the lack of research;secondly,it focuses on the impact mechanism,analyzes the mechanism of institutional distance,the level of cultural output,and the level of host country's academic and research cooperation affecting foreign direct investment,so as to build the overall framework and basis of this study;thirdly,it makes a review of China's foreign direct investment One belt,one road,is the most important part of the study.The qualitative description is to grasp the overall situation of our country's foreign investment,especially the "one belt and one road" investment.Finally,we build an empirical model,and establish a model to empirically study the impact of institutional distance on China's outward FDI,and verify the regression results based on the model regression.The main conclusions are as follows: first,the host country's political system distance and China's cultural output level respectively inhibit and promote China's foreign direct investment,and the level of cultural output can make up for the inhibition of political system distance to a certain extent;second,the host country's academic research cooperation level has a positive impact on China's direct investment,and the economic system distance has a positive impact on China China's direct investment has no significant impact,but under the influence of the level of industry university research cooperation,the economic system distance shows a significant inhibition effect on China's direct investment.To some extent,this inhibition can be made up by the level of industry university research cooperation.Third,the influence of political and economic institutional distance on China's FDI is not linear,and there is a threshold.Before and after the threshold,the influence of political system distance is first positive and then negative,while the influence of economic system distance is negative,but the influence coefficient is different.