Research On The Location Selection Of China's Manufacturing Outbound Direct Investmen

With the deepening of economic globalisation,multinational enterprises are rapidly expanding their activities through outward investment,promoting the synergistic development of the world economy and becoming an important driver of economic growth for various countries.At this stage,China has continued to promote a high level of outward openness and has become one of the world’s leading countries in terms of outward investment.China’s manufacturing sector has a solid foundation and ranks among the world’s top industries in terms of production value and export value.The scale of outward direct investment is increasing year on year and is a key sector for Chinese outward direct investment.China is in a period of transition and the 19 th Party Congress has explicitly proposed to promote the development of high-quality manufacturing industries.Through OFDI,resources are allocated and production capacity is transferred globally,which can achieve the modernisation of industrial structure and development level.Therefore,an in-depth study on the site selection of China’s manufacturing OFDIs is of great significance,as it can help Chinese enterprises select suitable locations,and also provide Chinese experiences to other developing countries.Firstly,the results of domestic and international studies are compared,and the theories related to the content of the studies are reviewed and organised;then,the current situation of Chinese manufacturing OFDI location selection is analysed using relevant data,and the main problems of current manufacturing location selection are summarised according to the scale and mode of manufacturing investment and global-oriented distribution;secondly,the influencing factors are analysed from three perspectives: host country,home country and enterprises.The study finds that Chinese industrial OFDI has important market motives and resource-seeking motives,technology export characteristics to developing countries,infrastructure,labour costs and geographical distance are also important influencing factors,and institutional quality is only important in the heterogeneity analysis,i.e.it shows opposite institutional tendencies to developed and developing countries.The above findings have important comparative value for understanding the rapid expansion of OFDI of newly industrialising countries and for optimising the global capacity layout of manufacturing industries;finally,suggestions are provided for optimising the choice of OFDI production locations at the country and firm level.