Studies On The Effect Of China’s OFDI On Energy Import Under The "Belt And Road"

In the process of China’s sustainable economic development,the energy industry is one of the driving forces of China’s economic development.Stable energy supply has also become a guarantee for a country’s sustained economic growth and political security.The rapid changes of the domestic and foreign situations make China’s OFDI attach strategic significance to domestic enterprises and the overall economic development.Even though there are various energy species distributed,problems still exist like uneven distribution and difficult exploitation.And the demand for energy imports is hiking with the rapid development of China’s economy.Among which,the import species of energy are mainly coal,oil and natural gas.Therefore,it attaches great significance to acquire the relationship about them with the aim of solving energy problems and enriching investment and trade related theories.The "global strategy" made by the CPC is in accordance with the economic globalization.The report of the 17th National Congress of the Communist Party of China clearly pointed out:"Adhere to the reform and opening policies,combine "bringing in" and"going out" strategy,expand opening field,and optimize opening structure.China’s foreign direct investment emerged since the reform and opening up.After forty years’development,it has made splendid achievements in various aspects such as investment amount,area,industry,and entities.With the government launches certain measures to stimulate foreign direct investment,China’s foreign direct investment has made a great increase from 0.916 billion dollars in 2000 to 1198.54 billion dollars in 2018.Since President Xi Jinping proposed the construction of the "Silk Road Economic Belt" and the"21st Century Maritime Silk Road" in 2013,economic and trade exchanges between China and countries have become increasingly active.And energy cooperation has become an important breakthrough for China to promote the "the belt and road initiative" .As of 2018,China’s total energy imports are 347.78 billion US dollars,and the energy imports of the sample countries selected in this article are 269.72 billion US dollars,which accounts for 78%of the total imports value.Therefore,the study may attach great importance in expanding China’s space for international energy cooperation,upgrading China’s energy industry,narrowing energy demanding gap,and establishing China’s energy strategic reserve system.With the in-depth development of "the belt and road initiative",China’s foreign direct investment has been ushered in new historical opportunities.Therefore,it is of great practical significance to clarify the relationship between the OFD1 of China and the energy import in order to explore the potential cooperation,expand the space for "Belt and Road" capacity,and to promote the upgrading of China’s energy industry.There are six chapters in this paper.The first part introduced the OFDI trade effect,the relationship between OFDI and energy trade,and the structural framework and so on.Chapter two about theoretical basis:theories related to OFDI.The third chapter is the analysis of the status quo,that is,the status quo of China’s OFDI and energy import under the background of "Belt&Road".The fourth chapter is mechanism analysis.The fifth chapter analyzes the panel data of OFDI and China’s energy import from 2003 to 2018,and makes an empirical analysis of the extended trade gravity model.Finally,the sample countries are classified under different OFDI mechanisms.The sixth is this article’s conclusion and landing corresponding suggestions according to the existing problems.The author found in this article that China’s OFDI has a positive impact on energy imports.A 5%enhancement in OFDI will drive China’s energy imports to rise by 0.118%.The level of economic development of the host country has a significant impact on China’s energy import,and every 1%increase in host country’s GDP may enhance China’s energy imports by 1.46%.What’s more,the energy import is positively related to the population of our country.The larger the total population,the higher the energy import demand.Whether sharing same border or not also plays a positive role in promoting energy imports.The innovation of this paper:first,fresh research perspective.Research by domestic scholars pay highly attention on the connection between OFDI and exports,and few research can be found on investment and import trade along with "Belt and Road"countries.And the existing thesis focuses on the fields such as agriculture,manufacturing and so on.This paper,from the energy industry perspective,regards the "Belt and Road" as research point,and focuses on the relationship between OFDI and energy imports.Second,new research methods.This article combines the trade gravity model with the instrumental variable method,using the instrumental variable method to overcome the endogenous nature of the model,and at the same time combines China’s foreign direct investment bulletin data to make the research content more substantial with the aim of providing a reference for OFDI and energy import trade of Chinese government and enterprises.The shortcomings of this paper are as follows:first,the unavailability of data.Owing to OFDI in China began in 2003—still in the preliminary phase at present,the OFDI data of certain "Belt and Road Initiative" countries are not complete-only 45 countries satisfy the requirements of this paper.Second,this paper studies the import trade of OFDI.Due to the inaccessibility of certain data and energy products,the author fails to make a further classification of energy products.