The Impact Of Business Environment Of Countries Along The "One Belt And One Road" On China’s OFDI

With the deepening of economic globalization and the successive growth of China’s economy,China’s outward foreign direct investment(OFDI)has become more and more influential.Recently,the overall flow of China’s OFDI in countries along "the Belt and Road"has shown rapid growth.As an important support for the "going global" strategy,"the Belt and Road" national-level top-level cooperation initiative has huge development potential.However,investment must be accompanied by risks.The business environment of the destination country and China’s investment motives will all have an impact on the effectiveness of OFDI.In addition,China’s foreign direct investment failures are not uncommon recently.Therefore,it is important for countries along "the Belt and Road" to do business.Objectively assess the environment and examine the impact of the business environment of the countries along the route on China’s OFDI under different investment motives.This will not only help improve the level of investment by Chinese companies in the countries along the route,develop potential investment markets,but also help China invest in the countries along the route.Sustainable development provides new impetus.In view of this,this article uses China’s OFDI data from 50 countries along "the Belt and Road" and the World Bank’s business environment project data from 2010 to 2018 to make descriptive statistics on the business environment of the States and the present condition of China’s OFDI.Based on the analysis,the two-stage system generalized moment estimation method is applied to examine the effect of the business environment of the countries along the route on China’s OFDI under different investment motives,and further explore the possible spatial effects of this influence.The research shows that:First,at present,States along "the Belt and Road" have significant differences in the business environment.Because of the discrepancies in business environments,China’s OFDI in the States along "the Belt and Road"has obvious spatial discrepancies.Secondly,through an empirical test of China’s foreign investment data in countries along "the Belt and Road",it can be seen that the business environment of the destination country and the investment motivation in the destination country are important factors influencing China’s foreign investment strategy.It is:the affect of the business environment on China’s OFDI has continuity in time,and the host country’s market and labor force have a significant positive impact on China’s foreign direct investment.Thirdly,under different investment motives,China’s preference for the doing business of the States along "the Belt and Road" extremely differs,and when it is motivated by the market to make foreign direct investment,it prefers countries with a poor business environment;When Chinese companies make foreign direct investment out of labor seeking motives,they tend to choose countries with a poor business environment for foreign direct investment;when they seek out natural resources for motives,the host country’s good business environment will directly affect China’s foreign direct investment.Investment has a positive impact;when Chinese companies make foreign direct investment out of the motive of seeking strategic assets,they are more inclined to invest in countries with a better business environment.At the same time,unpredictable factors in the surrounding countries of the host country have a significant impact on China’s OFDI.Investment also has a significant spatial agglomeration effect in space.Finally,according to the main research conclusions,this article proposes corresponding improvement suggestions and countermeasures from the destination state-owned business environment,China’s investment motives in different States,and the spatial agglomeration effect of China’s OFDI in States along "the Belt and Road".