An Empirical Analysis of the Influencing Factors of China's Direct Investment in Central and Western Asia under the COVID-19 Epidemica

Abstract

Under the new crown epidemic, the Sino-US trade friction has made China's foreign trade and investment in trouble. The research on the factors affecting China's direct investment in Central and Western Asia is of great significance for China to break through the economic blockade and participate in the layout of the global value chain. This paper takes China's direct investment in nine countries in Central and West Asia as a sample, selects a total of 7 indicators from three aspects of expected return, investment cost, risk and uncertainty, and creates a multiple linear regression model for empirical analysis. The results show that the market demand scale and resource endowment level of the host country have a significant positive promoting effect, while the number of laborers in the host country has a significant negative inhibitory effect. Finally, some suggestions are put forward for China's foreign investment in order to promote the decision-making of enterprises and governments.