Title :
Empirical research on factors determining China´s OFDI location distribution
Author :
Xuesong, Gu ; Liyan, Han
Author_Institution :
Sch. of Econ. & Manage., Beihang Univ. (BUAA), Beijing, China
Abstract :
This paper uses 116 host countries´ cross-sectional data to empirically analyze the factors determining China´s Outward Foreign Direct Investment (OFDI) location distribution, and provides some recommendations on how to form the optimal investment policy. The empirical results obtained by WLS regression method show that host countries´ market scale, economic risk, FDI policy, investment continuity, culture connection and technology level have significant effect on OFDI flow; while market potential, resource endowment, labor cost and political risk do not. The main contribution of this paper is the revelation of significant difference in the factors determining China´s OFDI towards developed countries and developing countries by Chow test, which would further benefit improving investment policy.
Keywords :
investment; regression analysis; China OFDI location distribution; China outward foreign direct investment location distribution; Chow test; WLS regression method; culture connection; economic risk; investment continuity; optimal investment policy; Economic indicators; Equations; Industries; Investments; Mathematical model; chow test; investment policy; location distribution; location factors; outward foreign direct investment;
Conference_Titel :
Service Systems and Service Management (ICSSSM), 2011 8th International Conference on
Conference_Location :
Tianjin
Print_ISBN :
978-1-61284-310-0
DOI :
10.1109/ICSSSM.2011.5959444