Research Of Factors Affecting The Location Selection Of OFDI In Chinese Enterprises Under The Background Of 'Belt And Road'

With the continuous development and advancement of the globalization of the world economy,enterprises from all countries are actively entering the international market,looking for potential market opportunities and seeking a broader space for development.China has long implemented the policy of opening to the outside world and actively encourage enterprises to ‘go global',and foreign direct investment has become an important way for enterprises to ‘go global' to explore international markets and participate in international competition.With the introduction of the ‘Belt and Road',Chinese enterprises have gradually shifted the focus of foreign direct investment to countries along the ‘Belt and Road'.Based on the location selection theory and the theory of foreign direct investment,combined with the current situation of China's direct investment location distribution along the ‘Belt and Road' countries,this paper selects the panel data of 56 countries along the ‘Belt and Road' in 2009-2017 to construct a gravitational model and analyze the important factors influencing China's selection of OFDI locations along the ‘Belt and Road' countries,combined with case analysis,taking Sumec Co.,Ltd.as an example to conduct an in-depth analysis of the development of Sumec's foreign direct investment and the status of location selection.The conclusions obtained in this paper are as follows:(1)The gravitational model constructed in this paper has good goodness of fit,and comprehensively analyzes the influencing factors of OFDI location selection.(2)Empirical analysis of the whole sample of countries along the ‘Belt and Road' The results indicate that the economic scale,bilateral trade volume and infrastructure level have a positive effect on OFDI.while geographical distance,political governance quality,and open horizontal distance have a negative effect on China's OFDI.(3)According to location distribution,The countries along the ‘Belt and Road' were divided into six groups and returned respectively.It was found that the main influencing factors of each location were different,indicating that China's OFDI has spatial differences in the selection of regions.(4)Sumec shares as a state-owned enterprise,actively participating the construction of ‘Belt and Road' has the characteristics of relatively large-scale foreign direct investment,mainly in traditional manufacturing,and concentrated in Southeast Asian countries.At the same time,combined with empirical analysis,it is known that there are differences in the main factors affecting Sumec's foreign investment in different regions.Sumec does the location selection of foreign direct investment a more correct decisions,improve the international influence and strategic development of the company.Based on this,this paper proposes countermeasures and suggestions on how Chinese enterprises can better choose the location of foreign direct investment in the context of ‘Belt and Road' from the national and enterprise levels.The national government should actively implement measures to continuously improve the quality of the political system,promote the process of regional economic integration,and improve the infrastructure construction along the ‘Belt and Road'.Enterprises can make scientific decisions through formulating overseas development strategies,improve innovation capabilities and gain competitive advantage,improve risk prevention awareness,optimize investment layout and other countermeasures,and jointly promote Chinese enterprises to optimize their international layout and promote the sustainable development of China's economy.