Research On The Impact Of The System Environment Of Countries Along The " The Belt And Road " On OFDI In China

In 2013,General Secretary Xi Jinping put forward a major initiative of the “The Belt and Road”.In 2015,the “The Belt and Road” entered the stage of comprehensive advancement from the stage of imagination,and achieved remarkable results with the full support of the countries along Asia,Europe and Africa.By the end of January 2020,China had signed 200 cooperation documents with 138 countries and 30 international organizations to jointly build the “The Belt and Road”.At present,the countries along the “The Belt and Road” account for a place in China 's foreign direct investment.There are seven countries along the “The Belt and Road” among the top 20 countries and regions in terms of direct investment flow.The institutional environment of the countries along the route is more complex and changeable,and China's direct investment in it is not smooth,especially if the leaders of the country change,OFDI of Chinese companies is likely to encounter major setbacks,so the “The Belt and Road” along the route what kind of impact the country 's institutional environment will have on China 's OFDI is a question worth discussing.Based on an institutional perspective,China 's OFDI analysis of the “The Belt and Road” countries by region reveals that despite the serious corruption of government officials in Southeast Asia,it has attracted a large amount of investment from China;the political turmoil in West Asia and North Africa has shown a downward trend in investment flows in recent years;the similarity of the institutional environment is a region favored by OFDI;South Asia has directly affected the decline in direct investment in recent years due to political changes;Central Asia and Mongolia are susceptible to geopolitical fluctuations,so they are the areas with the least investment flows in 2018.Based on the data of China 's foreign direct investment in 46 countries along the “The Belt and Road” from 2008 to 2018,a panel regression analysis was conducted.Through the regression of the host country 's total institutional environmental level,we learned that China was performing OFDI on the countries along the “The Belt and Road”,preferring countries with poor institutional environment,have a certain degree of institutional risk appetite;through regression of the six specific institutional environmental indicators of the WGI index,it is found that when China performs OFDI on countries along the “The Belt and Road”,China is more inclined to corruption countries with high political stability and more democratic politics,and Chinese companies are not very concerned and concerned about the government efficiency,regulatory quality and the level of the rule of law in countries along the “The Belt and Road”;through the host country 's overall system environment level and infrastructure construction level the regression of the cross-terms found that after adding the cross-terms,the overall institutional environment level of countries along the “The Belt and Road” has a more significant and greater impact on China 's OFDI,and China 's OFDI institutional risk appetite has been strengthened;the overall institutional environment whether the level is better than China is the standard,carried out on 46 sample countries after the organization,it was found that when enterprises face the overall institutional environment level that is not as good as China's “The Belt and Road” countries,OFDI has a tendency to "outperform",and when facing these countries whose overall institutional environment level is worse than China,then there is a trend of "advancing the best".According to the results of empirical research,this article puts forward some suggestions for China 's implementation of OFDI in countries along the “The Belt and Road”.First,it should focus on the host country 's institutional environment,especially political stability and democratic politics.Second,it should help the host country to build a foundation.For the construction of facilities,the third is to continue to increase bilateral trade exchanges,and the fourth is to fully consider the overall investment environment of the host country.