Research On The Environmentally Influencing Factors Of China's OFDI In Asean Member States

With continuous progress in economic and technological power,China began to attach great importance to not only IFDI but also OFDI.President Xi Jinping put forward the ‘One Belt,One Road'(OBOR)Initiatives in 2013,which is a significant milestone for China's OFDI.All the ASEAN member states are along the OBOR.Therefore the ASEAN member states can benefit directly from OBOR.So far there has been a great wealth of literature on trade effect of China's OFDI,and some literature on environmentally influencing factors of China's OFDI.However there is much less research on the environmentally influencing factors of China's Foreign Direct Investment in ASEAN member states.Plus due to obvious differences of economic development and natural resources among the ten ASEAN member states,relevant research should be specific.This thesis depicts various situations of the ASEAN member states by country and by sector in Chapter 3.In Chapter 4,although it is divided by neither country nor sector,this thesis designs 9 regression models: One basic model involving all the key environmentally influencing factors of China's Foreign Direct Investment in ASEAN member states.Then separate the basic model to another two models with only internal or external environmentally influencing factors.After that,replace the factor named Government Management Quality with six indicators of World Governance Indicators(WGI).Finally observe whether significance of different environmentally influencing factors would change as model changes.Such a method designing specific models has never been utilized before in the papers discussing the same topic.This is a key innovative point.The structure of the thesis is as follows.Introduction clarifies the background and significance of the study,depicts relevant research on OFDI environmentally influencing factors and environmentally influencing factors of China's Foreign Direct Investment in ASEAN member states,and summarizes methods utilized,points of innovation and weaknesses.Chapter 1 tells about relevant theories,namely Product Lifecycle Theory,Theory of Comparative Advantage to Investment and Eclectic Theory of International Production.Then it analyzes the mechanism for China's Foreign Direct Investment inASEAN member states in five environmental aspects,namely economic environment,political environment,science and technology,natural environment and infrastructure.Chapter 2 demonstrates the general situation of China's Foreign Direct Investment in ASEAN member states,finds problems in it and depicts the current investment environment in terms of political environment,legal and policy environment,economic environment and natural environment.Chapter 3 refers to Gravity Model,designs nine regression models(one basic model and eight derivative models),and deals with data between 2003 and 2018 utilizing STATA 15.0.LLC test is used before the regression analysis;FGLS parametric estimation is utilized during the regression process.Chapter 4reaches conclusions and makes policy-making suggestions.Conclusions are that obvious market-seeking motivation exists during the process of China's Foreign Direct Investment in ASEAN member states;higher natural resource endowment and technological endowment,and steady and preferential FDI policies can increase FDI inflow from China to some extent;China's Foreign Direct Investment in ASEAN member states and China's exports to ASEAN member states are mutual substitutes;China tends to invest in host countries with a clean government and better rule of law.What factors can attract more FDI toward ASEAN member states can also apply to China.The thesis recommends that China should broaden the size of the market,improve the current investment environment and offer more preferential FDI policies.