Research On The Influence Of Host Country Business Environment On China's OFDI

In the wave of regional economic integration and economic globalization,the integration of the world economy has deepened and investment activities between countries have become increasingly frequent.Under the background of the “going out” strategy,China plays an active role in promoting the development trend of globalization.In 2013,China proposed the development strategy of “One Belt,One Road”.Once it was put forward,it received positive responses from all countries in the world and became an important part of China's “going out” strategy.China's foreign direct investment(OFDI)has grown rapidly,and has grown to become the world's second largest capital exporter.The rapid growth of China's OFDI has attracted wide attention from all over the world.Scholars at home and abroad have explored the location choice of China's OFDI from various angles such as institutional distance,cultural differences and economic environment.By consulting the literature,it is found that few scholars study the location choice of Chinese enterprises OFDI from the perspective of the host country business environment.Then,under the strategic background of “One Belt,One Road”,what kind of development will China's OFDI have? How will the business environment of the host country affect China's OFDI? How will the OFDI of China's multinational enterprises choose location? This will be the problem of this paper.This paper argues that the business environment is a unity formed by the institutional environment,infrastructure,financial environment and market efficiency that affect international investment,and uses the index in the Global Competitiveness Report published by the World Economic Forum to build a business.Based on the evaluation system of the environment,the principal component analysis method is used to measure the indicators of the business environment and the first-level indicators of the business environment.Then,according to the availability of the data,46 countries along the “Belt and Road” are selected.-2017 OFDI panel data construction gravitation model for empirical analysis.Firstly,the effects of host country institutional environment,infrastructure,financial environment and market efficiency on China's OFDI were studied.The research results show that the host country business environment has a significant positive effect on China's OFDI.The four aspects of the host country's business environment,namely infrastructure,institutional environment,financial environment and market environment,have a significant positive impact on China's OFDI.Then based on four kinds of foreign investment motives,namely market seeking,efficiency seeking,resource seeking and technology seeking,by investing in the basic model to separately add four kinds of investment motives and business environment interaction items,study the investment motive heterogeneity under the host country.How does the environment affect China's OFDI? The study found that the OFDI under the heterogeneity of investment motives has different influences on the business environment of the host country.Finally,based on the research conclusions of this paper,several points of enlightenment on foreign investment are elaborated.