The Impact Of Psychic Distance On Chinese OFDI Location Choice Under The "B&R"

President Xi Jinping proposed to jointly build the "Silk Road Economic Belt" and "21st Century Maritime Silk Road"(hereinafter referred to as the “Belt and Road” initiative)during his visit to East Asia and Southeast Asia in September and October 2013.In the past four years,China's direct investment in the countries along the “Belt and Road” has rapidly increased,and the implementation of the “Belt and Road” strategy has achieved initial results.This paper firstly studies the research results of scholars at home and abroad on psychological distance and location selection.It also divides the motives of foreign direct investment and introduces China's foreign direct investment circumstance.Then,from the five dimensions of industrialization level difference,government governance and institutional differences,education level difference,cultural distance and geographical distance,the psychological distance comprehensive index is constructed and relevant hypotheses are given.The psychological distance is taken as the research perspective,and the foreign investment gravity model is used to study the influence on location selection of OFDI in countries along the “Belt and Road” in China.The test results show that there is a significant negative relationship between psychological distance and foreign direct investment.Among the five dimensions,only the difference in industrialization level has a positive relationship with foreign direct investment,and all other dimensions have a significant negative relationship with foreign direct investment.Finally,from the perspective of psychological distance,China's suggestions on the location choice of foreign direct investment in the countries along the “Belt and Road” are proposed respectively at the micro(enterprise)level and the macro(government)level.Enterprises should make use of policy advantages;conduct market assessments and inspections;promote personnel training and introduction.The government should continue to steadily promote the construction of bilateral or multilateral systems;strengthen inter-governmental cultural exchanges and cooperation,and promote mutual communication;strengthen the construction of information platforms and enhance the transparency of foreign investment.