Research On The Impact Of Host Country Institutional Quality On China’s Agricultural OFDI

In recent years,the Party and the government attach great importance to the promotion of agriculture “going global” strategy,at the same time forien direct investment is an important way of agricultural development,and also an important guarantee measure to improve food security.In the process of China’s agricultural foreign investment,the institutional quality has becoe an invisible barrier affecting the location and benefit of investment.Different institutional arrangements lead to barrier to entry and different market transaction costs.Blateral and mulrilateral agreements has a direct effect on a country’s institutional ebvironment and affect the investment behavior of enterprises.Therefore,this paper first expounds the current situation of China’s agricultural OFDI,focuses on the investment scale,mian investment areas and investment mode of Chinese agricultural OFDI.It is found that in recent years,the investment scale of Chinese agricultural OFDI has decreased,and the investment mainly flows to the United States,Russia,Australia,the European Union,and ASEAN.The investment field is mainly concentrated in the low-end industrial chain of plainting and animal husbandry,but the investment modes are diversified.Next,according to the relevant policies of major agricultral investment regions,as well as the content of agricultural investment in the ASEAN Free Trade Agreement and RCEP agreement,from the perspective of the value of institutional quality,the institutional quality of Chinese Agricultural OFDI is comprehensive,systematic,spatial level and relative.Then,explore how the institutional quality affects Chinense agricultural ODFI from three aspects: the opening level of a country’s agricultural foreign investment,the facilitation level of agricultural investment and the ability to resist risks,and analyze the possible regulating role of BIT in it.Then using Stata16 baesd on the investment gravity model of economies of panel data of2006-2020 test the impact of the quality of the system on China’s OFDI.Finally,on the basis of institutional theory and agricultural OFDI research,this paper put forward suggestions to help relevant enterprises effectively identify the potential institutional risk in the process of Chinese agricultural foreign direct investment and accurately grasp the dividend of institutional arrangement,which provides theoretical reference for the development of China’s agricultural OFDI.The study found that the quality of the political system was significantly postively associated with China’s agricultural direct investment in the host country.The quality of economic system is negatively correlated with China’s agricultural direct investment in the host country.The quality of cultural system is postively correlated with China’s agricultural direct investment in the host country.After joining the transfer item of bilateral investment agreement,there is a certain degree of strengthening on the risk preference of economic system quality,but the risk preference of political system quality and cultural system quality is weakened to a certain extent.Therefore,this paper believes that in order to improve the quality and level of Agricultural OFDI in China,it is necessary to strengthen scientific and technological innovation,clarify institutional arrangements,make full use of policy dividends,study the agricultural investment environment in the host country,break through the blockage of agricultural investment and financing policies,and cultivate high-level talents to enhance the level of cross-cultural exchanges and management.