An Analysis Of The Influence Of Host Country's Factor Endowment On China's Outward Foreign Direct Investment

Since the implementation of market-oriented reform,China's economic development has shown a trend of rapid growth,and its foreign economic cooperation has become increasingly frequent.With the improvement of comprehensive national strength,China's domestic enterprises are also "going out" one after another to participate in the wave of globalization.Outward foreign direct investment is an important part of global economic cooperation,which links global capital and promotes the effective distribution of production factors in the world.In recent years,China's outward foreign direct investment has developed rapidly.In terms of both flow and stock,China has become one of the largest countries in outward foreign direct investment area.In most areas of the world,especially among developing countries,the existence of Chinese capital cannot be ignored.In particular,the rapid development of "One Belt and One Road" in recent years has helped the host countries along the route achieve rapid economic and social development,the degree of cooperation with China is also deepening.At present,China is facing the pressure of industrial upgrading and transformation,and the increase in the cost of production factors makes Chinese enterprises continue to speed up the pace of overseas searching for resources.Register new companies in other countries and regions,raise overseas financing by issuing US dollar bonds,purchase mineral mining rights in the host countries,acquire overseas oil companies,and set up production factories in burgeoning populous countries.Chinese enterprises carry out outward foreign direct investment in various ways to achieve the global optimal allocation of production factors,and also promote the upgrading of domestic industries.Under the grand background of global economic cooperation,it has become a valuable study direction to deeply explore the purposes of Chinese enterprises' outward foreign direct investment and to help enterprises which have just stepped out of China to choose ideal host countries for foreign investment.Although scholars at home and abroad have written a lot in this area,most of them are not new enough to explain the actualities,and there are few studies on the current situation of China's outward foreign direct investment in recent years,and most of the studies focus on certain factor areas or institutional factors.There are few results of subdividing and comprehensive research on the factor endowment of the host country.Therefore,it is of practical significance to summarize the current situation of China's outward foreign direct investment and comprehensively analyze the impact of the host country's factor endowment on China's outward foreign direct investment,which can improve the quality of resource-seeking investment of Chinese enterprises.First of all,based on the general environment of global economic cooperation and China's outward foreign direct investment,this paper expounds the research significance of this topic to ensure the existence of research value;secondly,it summarizes the relevant literature and theory according to the connotation of outward foreign direct investment and factor endowment,which lays the foundation for the following empirical analysis.Thirdly,30 economies in Asia are selected as the research objects of the article,and their investment environment is stated in detail with the clue of factor endowment,institution and culture,and the current situation of China's outward foreign direct investment is expounded accordingly.Finally,on the basis of previous scholars' studies,using the panel data of 30 Asian economies from 2010 to 2018,this paper focuses on an empirical analysis of the impact of host country factor endowments on China's outward foreign direct investment,discusses the impact of host country's factor endowments on China's outward foreign direct investment,and compares the impact of factor endowments on Chinese enterprise investment in South Asia and Southeast Asia,Central Asia and West Asia.Specific and detailed countermeasures and suggestions are put forward according to the empirical results and theoretical basis.Through the regression results of the full sample data,it can be concluded that all kinds of factor endowments of the host country play a significant positive role in promoting China's outward foreign direct investment.Through the regression results of sub-regional data,it can be concluded that all kinds of factor endowments in South and Southeast Asia have a significant positive effect on China's outward foreign direct investment,among which the economic significance of labor endowment is more significant.In comparison,the results of natural resources and capital endowments in Central and West Asia are significant,but their labor endowments have no significant impact on China's outward foreign direct investment.In addition,the lag one period of China's outward foreign direct investment,the openness of the host country and bilateral cooperation agreements have a significant impact,while the institutional factors of the host country do not have a significant promoting effect.Based on the regression results,in order to promote Chinese enterprises to improve the quality of outward foreign direct investment,the corresponding countermeasures and suggestions are put forward from the two levels of government and enterprises: the first is to deepen the mutual trust mechanism with the host country to ensure the safety of enterprises' overseas investment;the second is to strengthen international financial cooperation and establish a mutual exchange system;the third is to strengthen infrastructure construction to improve the efficiency of outward foreign direct investment;the fourth is to improve the awareness of risk prevention and increase the liquidity of assets;the fifth is to explore the market of the host country and build the ecological environment of the industrial chain;the sixth is to protect the ecological environment of the host country and assume social responsibility,the seventh is to set up industry associations to realize resource sharing.Finally,by summarizing the current situation of China's outward foreign direct investment and looking forward to its future development,we can see that China's outward foreign direct investment is developing rapidly and has a broad space for development in the future.