Research On The Impact Of Institutional Quality On China's OFDI Based On The Adjustment Effect Of Resources And BIT

With the "Belt and Road" initiative and the "Go Global" strategy put forward,more and more enterprises have joined China's Outward Foreign Direct Investment,and China's Outward Foreign Direct Investment has also attracted more and more scholars' attention.As so far,most existing papers focuses on OFDI's location selection.However,the existing papers didn't get agree with the impact of the institutional quality on China's OFDI.Therefore,based on the existing papers,this article will focuse on the impact of the institutional quality on China's OFDI.This paper uses panel data from 88 countries along the "Belt and Road" from 2003 to 2016,combined with the adjustment effects of resources and bilateral investment agreements,to comprehensively explore the impact of host country institutional factors on China 's OFDI,and to use the systematic GMM method for empirical testing.The empirical results show that the overall system quality of the countries along the "Belt and Road" has a positive impact on China 's OFDI;specifically,China 's OFDI tends to invest in countries along the route that are politically stable,with high government efficiency,and high levels of corruption control,but avoid the level of rule of law High countries along the route.In order to explore the reasons why China OFDI avoids the countries along the rule of law,this article further examines the impact of institutional distance on China 's OFDI and finds that although China 's OFDI has a "system proximity advantage" in the host country,it does not use this advantage,but tends to go Countries along the route with greater institutional distances invest,and the proximity of institutions is not the reason why China 's OFDI avoids countries along the route with a high level of legality.This article continues to introduce the interactive item between resources and system quality,and finds that there is an alternative relationship between resources and system quality.In order to obtain low-cost resources,resource-based OFDI relaxes the requirements for political stability,regulatory quality,rule of law,and corruption control in countries along the route..In order to clarify how to reduce the institutional risks faced by resource-based OFDI in countries along the "Belt and Road",this paper also introduces the interactive items of bilateral investment agreements and institutional quality.There is an alternative relationship between bilateral investment agreements and institutional quality.Signing bilateral investment agreements can compensate for the lack of institutional quality in countries along the "Belt and Road".Finally,based on the empirical results,this paper proposes countermeasures for China's investment in countries along the "Belt and Road".