Study On The Impact Of Multi-dimensional Distance Between China And Countries Along The "Belt And Road" On OFDI

In the 21st century,in order to build a quality power,realize Chinese-style modernization and enhance international influence,General Secretary Xi Jinping proposed the "Belt and Road" initiative.The report of the 20th National Congress pointed out that the joint construction of the "Belt and Road"has become a popular international public goods and international cooperation platform,and has achieved fruitful results.However,the current international situation is complex and unpredictable,and countries along the "Belt and Road" have different socio-cultural and economic development conditions,and these differences are crucial for multinational enterprises to formulate internationalization strategies.In order to better promote the high-quality development of the Belt and Road,this paper selects relevant data from 2009 to 2020 between China and 25 countries along the Belt and Road to comprehensively analyze the impact of distance on direct investment,which impact is the most direct,and whether the impact of distance on investment has a threshold effect,and puts forward targeted policy recommendations.Firstly,the relevant research and related theories at home and abroad are sorted out,and then the mechanism of multi-dimensional distance on China’s outward direct investment is explained,and the research hypothesis of this paper is proposed on this basis.Secondly,the empirical model was set up,the variables involved in the model were sorted out,and the selection situation and data sources were introduced in detail,and then the multi-dimensional distance was measured.Finally,the investment gravity model is used to test the influence of multi-dimensional distance on investment.The empirical results show that cultural,economic,institutional,geographical and comprehensive distance have a negative correlation on OFDI and are all very significant,indicating that distance will have an impact on the investment strategy of multinational enterprises.At the same time,the panel threshold model is further used to explore which distances have inflection points,and the results show that there is a threshold effect on the impact of economic distance on OFDI,and the impact of economic distance on investment is small when the threshold value is below,and exceeding the threshold value will seriously affect the outward direct investment behavior of enterprises,while the threshold effect of institutional,cultural,geographical and comprehensive distance is not obvious.At the end of the paper,a series of policy suggestions are put forward from the aspects of improving infrastructure construction,building a smooth global logistics system,optimizing investment strategies and investment layout,establishing Internet cultural exchange platforms,deepening institutional research,improving institutional risk assessment systems,and inci easing cultural exchanges.