TITLE:
Analysis of Factors Affecting Chinese Outward Foreign Direct Investment: An Empirical Study Based on Stochastic Frontier Model
AUTHORS:
Qinxuan Wang
KEYWORDS:
Outward Foreign Direct Investment, Stochastic Frontier Model, Chinese Enterprise
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.9 No.3,
March
4,
2021
ABSTRACT: This paper uses panel data of 20 target countries of China’s outward foreign
direct investment (OFDI) from 2011-2019 to establish a stochastic frontier
gravity model to study the influencing factors of China’s OFDI and to define
and measure the investment potential by summarizing and generalizing the
relevant literature. The results show that: Chinese GDP, host country GDP, host
country trade openness, host country government governance capacity, and host
country intellectual property protection level are positively correlated with
Chinese OFDI; national investment guidance policies have a very obvious
positive effect on the growth of Chinese outward investment. In the
post-epidemic era, in order to promote the development of Chinese OFDI and
fully exploit the potential of Chinese OFDI, we should strengthen macro and micro
regulation to ensure a stable and high-quality economic development, actively
introduce national investment policies to cope with changes in the
international investment policy environment, optimize the investment industry
structure, and avoid investment risks.