The Influence Of Political Distance Under The "One Belt And One Road" On The Choice Of ADI Enterprises' OFDI Model

Under the "Belt and Road" initiative,outward foreign direct investment has become an important way to realize China's industrial transformation,enhance international competitiveness,and achieve common prosperity with the countries along the route.At present,the "Belt and Road" initiative is in the stage of full implementation,and China will pay more and more attention to investment in countries along the "Belt and Road".This is both an opportunity and a challenge for Chinese companies.Based on this background,the paper studies the influence of the political distance between the two countries on the choice of Chinese companies 'OFDI model from the perspective of political relations,broadens the perspective of research on the factors affecting the OFDI model of enterprises,and at the same time selects the optimal OFDI model for Chinese companies.It is of practical significance to promote the long-term development of enterprises overseas.Aiming at research issues,the thesis uses the Political Affinity indicator to measure the political distance between the two countries,and uses the voting data of the United Nations General Assembly over the years to quantify it.The enterprise's OFDI model is divided into two types: establishment model(greenfield,M & A)and entry model(joint venture,sole proprietorship).Two or two combinations are made to obtain four investment models: greenfield sole proprietorship,greenland joint venture,sole proprietorship,and merger and acquisition joint venture.The data of 2,494 foreign direct investment behaviors of Chinese A-share companies in the countries along the “Belt and Road” between 2013 and 2018 were selected to establish a multiple logit regression model for empirical analysis.Further,by introducing the interaction items of political distance and industrial variables,and political distance and enterprise variables,the industrial heterogeneity and enterprise heterogeneity of political distance to the OFDI model of enterprises are studied,and the methods of transforming models and replacing variables are used to carry out robust test.The study found that: First,as the political distance between the two countries increases,the optimal choice for enterprises is the OFDI model of mergers and acquisitions,and the second best choice is the greenfield joint venture and greenfield sole proprietorship.There is no clear priority for the two OFDI models;Second,the influence of political distance on the choice of corporate OFDI model shows industrial heterogeneity,that is,as the political distance between the two countries increases,compared with the tertiary industry,the primary and secondary industries are more inclined to choose greenfield joint venture investment Third,the influence of political distance on the choice of corporate OFDI model shows corporate heterogeneity,that is,as the political distance between the two countries increases,compared with state-owned enterprises,non-state-owned enterprises are more likely to choose the OFDI model of greenfield joint ventures.However,enterprises with high capital intensity are more likely to choose the greenfield-owned OFDI model.Finally,based on the above conclusions,the paper puts forward targeted countermeasures and suggestions.From the perspective of politics,the thesis studies the influence of political distance on the selection of OFDI models of enterprises for the first time.Carrying out research and comprehensively considering the types of enterprises 'OFDI model choices,so as to provide a reference for Chinese companies to“ go out ”the OFDI model selection order,promote the long-term development of enterprises overseas,and thus improve China 's economic strength and international competitiveness Make a contribution.