The Impact Of The Host Country Financial Ecology On China’s OFDI

OFDI is becoming more and more important with the development of the global economy.The problem is that only relying on the home country’s financial systems are imperfect.At this time,the host country’s financial ecology can greatly ease the constraints on corporate financing and expand corporate financing channels.Therefore,it is the trend of future development to use the host country’s financial ecology to enable enterprises to "go global" better.In addition,countries around the world are interdependent in space and geography,so it is of great significance to study the third-country effect of the host country’s financial ecology on China’s foreign direct investment.Firstly,the paper summarizes and sorts out the literatures related to foreign direct investment,the host country’s financial ecology and the third-country effect,and then analyzes the theoretical mechanism of the host country’s financial ecology affecting OFDI based on the relevant theoretical basis.Secondly,through the principal component analysis method,the financial ecological index of 119 countries in the world is constructed,covering five dimensions of financial scale,financial deepening,financial efficiency,financial stability and financial environment.Then,using the fixed effect model,the spatial durbin model,the spatial autocorrelation model and the spatial error model,the whole sample benchmark regression is carried out,and then the sub-index regression test is carried out on the financial ecological indicators,and the heterogeneity is carried out according to the different investment motivations.analyze.Finally,the robustness test is carried out by three methods: transforming the spatial weight matrix,instrumental variable method and spatial GMM model.The conclusions are as follows:(1)There are big differences in the financial ecology index in various regions of the world.The financial ecology of Europe,North America and Oceania is better developed,Latin America and Asia are ranked in the middle,and Africa is ranked behind.(2)The empirical test shows that the good financial ecology of the host country has a promoting effect on my country’s OFDI;in terms of the spatial third country effect,the good financial ecology of the third country will increase my country’s OFDI to the host country,and there is complementarity between the OFDI of the host country and the third country The improvement of the financial ecology of the third country will have a certain positive radiation and driving effect on the host country.(3)In the regression of sub-indicators,the direct effect of the host country’s financial scale on OFDI is negative,and the impact of host country’s financial deepening,financial stability,and financial environment on OFDI is positive;in terms of spatial third country effects,the host country’s financial scale,financial Deepening and financial stability are complementary effects,while financial efficiency and financial environment are crowding-out effects.(4)In the regression of investment motivation heterogeneity,the financial ecology of the host country will have significant resource-seeking and market-seeking OFDI,and the third country effects of the host country’s financial ecology on these two types of OFDI are complementary effects;The impact of asset-seeking OFDI is not obvious,and the third country effect is a crowding out effect.The paper puts forward policy suggestions such as making full use of the financial ecological resources of host countries and the spatial effect in country’s foreign direct investment.