The Impact Of Bilateral Political Relations On Outward Foreign Direct Investment Of China Service Industries

At present,outward foreign direct investment of China service industries is developing rapidly and is the main force of total OFDI.At the same time,it is also facing challenges such as the rise of investment protectionism and the strengthening of review by host countries.As an active institutional factor that can be actively constructed,bilateral political relations can give enterprises specific competitive advantages and corresponding property rights protection,reduce the invisible threshold in service industry investment,and promote the growth of outward foreign direct investment of service industries.Understanding and analyzing the impact of bilateral political relations on outward foreign direct investment of China service industries not only enriches the relevant research from the institutional perspective,but also provides beneficial enlightenment for enterprises on how to use bilateral political relations to resist adverse factors and promote their own investment development.Based on this,this dissertation takes outward foreign direct investment of China service industries as an example,selects the voting data of the United Nations General Assembly to describe bilateral political relations,constructs a three-dimensional panel of "enterprise-year-host country" by using the data of "Chinese Enterprise OFDI events" compiled by Center for China and Globalization,combines institutional theory,and uses zero expansion poisson model and multi-dimensional fixed effect model to makes an empirical test and in-depth discussion on the relationship between the two things.The empirical results show that:(1)On the whole,good bilateral political relations are conducive to the growth of outward foreign direct investment of China service industries.(2)Based on the nature of service industry attribute,enterprise ownership and the national characteristics of the host country,there are significant differences in the positive impact of good bilateral political relations on outward foreign direct investment of China service industries.(3)The test results of the regulatory effect of the host state-owned business environment and bilateral investment agreements show that with the improvement of the host state-owned business environment or the entry into force of bilateral investment agreements,the positive role of good bilateral political relations in promoting outward foreign direct investment of China service industries will be weakened.In this regard,China should actively develop its political relations with countries around the world and provide corresponding institutional guarantee for promoting the sound and rapid "going out" of Chinese enterprises,especially the development of outward foreign direct investment of China service industries.