Political Risk Of Host Country And Location Choice Of China’s Outward Foreign Direct Investment ——Based On The Regulatory Effect Of Global Value Chain Control

Under the trend of economic globalization,China’s economic openness to the world is deepening.In the process of outward foreign direct investment,China is not only the beneficiary of economic globalization,but also inevitable to face the political risk from the host country.With the gradual development of global value chain as a significant feature of the world economy,enterprises’ operation activities are no longer confined to one country,one market,but should actively participate in the division of labor of global value chain and pursue the optimal allocation of resources in the global scope.Therefore,it is of great significance to explore the influence of host country political risk on China’s outward foreign direct investment location selection from the perspective of global value chain.Based on the traditional political risk theory,this paper analyzes the relationship between host country’s political risk and China’s outward foreign direct investment location selection.This paper introduces global value chain control as a moderating variable and divides it into two dimensions of global value chain participation and global value chain status.From the perspective of resource dependence theory and bargaining power theory,this paper analyzes how these two factors affect the relationship between host country political risk and China’s outward foreign direct investment location selection.Based on this,this paper puts forward the research hypothesis and constructs the theoretical model.In this paper,Stata14.0 is used for empirical test of sample data.Firstly,descriptive statistics are used to analyze the mean,standard deviation,maximum and minimum values of each variable.Secondly,correlation and VIF test are used to verify the existence of multicollinearity among variables.Finally,the regression analysis of the model is carried out,and the robustness test is carried out to ensure the stability of the regression results.The research results of this paper show that:（1）host country political risk has a negative impact on China’s outward foreign direct investment location selection;（2）China’s higher GVC status relative to host country can significantly weaken the negative impact of host country political risk on China’s outward foreign direct investment location selection;（3）China’s higher GVC participation relative to host country has no significant moderating effect on the relationship between host country political risk and China’s outward foreign direct investment location selection.This paper introduces global value chain control as a moderating variable,which enriches the analysis perspective of existing researches and provides possible enlightenment for Chinese enterprises to optimize investment location decision-making in the context of global value chain.