Analysis On Efficiency Of China's Outward Direct Investment To The B&R Countries

In recent years,China's foreign direct investment flow keeps increasing.In the context of the world economic downturn and the decline in the growth rate of goods trade,the global foreign direct investment has shrunk.China's flow of foreign direct investment has bucked the trend and played a leading role in the world.At present,China has become the world's second largest country in FDI flows.China's FDI structure has been constantly optimized and its level has been constantly improved,which has played an important role in world investment.With the development of“the Belt and Road Initiatives”,China is increasingly connected with BRI countries.It has paved the way for investment cooperation in policy system,infrastructure and cultural exchanges.It has signed cooperation initiatives,joint statements and standardization agreements with a number of countries,and established six major international economic cooperation corridors,including the new Eurasian Continental Bridge,China-Mongolia-Russia,China-Central Asia-West Asia,China-Pakistan-Bangladesh,China-IndochinaPeninsula,China-Pakistan-Bangladesh,China-India-Myanmar.A series of measures,such as the establishment of green channels,the establishment of free trade zones and the innovation of trade and transaction modes,have promoted the substantial growth of trade between China and the countries along “ the Belt and Road Initiatives”,and laid a good trade foundation for China's foreign investment.“The Belt and Road Initiatives”has been supported by various financing methods.Various funds such as silk road fund,European Investment Fund and sovereign funds have all injected a force.Financial institutions such as Chinese people's Bank,Asia Investment Bank,African Development Bank and European Renaissance bank have broadened financing channels.In terms of cultural exchanges,we should hold cultural festivals with countries along“the Belt and Road Initiatives ”,jointly build education,promote tourism cooperation and rescue cooperation between China and countries along “ the Belt and Road Initiatives ”,and enhance mutual trust and understanding.“the Belt and Road Initiatives” has also made it a hot topic of inquiry.Although “the Belt and Road Initiatives”has opened up a new path for foreign direct investment,but at present,the scale and proportion of direct investment in“the Belt and Road Initiatives”countries are relatively insufficient.And “the Belt and Road Initiatives”countries has its own characteristics and advantages.Therefore,it is of great significance to explore the level of China's investment efficiency in B&R countries and the factors that cause the loss of China's direct investment efficiency in B&R countries in order to improve China's level of foreign direct investment,optimize the investment mode and investment structure,give full play to the policy advantages,and promote the global foreign direct investment and economic growth.Firstly,this paper combs the theory of foreign direct investment from the theory of international direct investment.Secondly,from the perspective of investment environment,according to the classification of different regions,this paper explores the economic,political and cultural environment faced by investment in B&R countries.The investment environment of“the Belt and Road Initiatives”countries is quite different: the investment environment of European countries is good,Asia,Africa and America are relatively complex,low economic freedom,terrorism and political instability become the challenges faced by investment.Thirdly,it analyzes the current situation of China's investment in B&R countries from the perspective of investment scale,investment industry and regional distribution.The current situation of China's direct investment in B&R countries is that the investment scale is gradually increasing,the annual change rate is large,the investment industry is widely distributed and transferred to the tertiary industry,and the regional distribution difference is large.Finally,in order to comprehensively measure the investment efficiency of China to B&R countries and explore the factors that cause the loss of efficiency,this paper selects macro indicators such as economy,politics,culture and micro indicators such as investment mode,investment subject,investment industry,etc.,selects data from 46 B&R countries in 2010-2017,and uses the stochastic frontier gravity model to conduct empirical analysis.The final result shows that China's investment efficiency in B&R countries is only 0.35,at a relatively low level.Among them,economic freedom,political environment,and the choice of investment mode have a significant impact on the efficiency of China's direct investment.In view of this,we should pay close attention to the macro environment of the host country,keep close contact with local residents,improve the level of connectivity,and encourage enterprises to choose green investment methods to improve the efficiency of China's direct investment in“the Belt and Road Initiatives”countries.