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.
Highlights
In recent years, along with the prevalence of international trade protectionism and the crisis brought by the COVID-19 epidemic, the global economy has further slowed down and the total FDI outflows have continued to shrink
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 outward foreign direct investment (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
Summary
Along with the prevalence of international trade protectionism and the crisis brought by the COVID-19 epidemic, the global economy has further slowed down and the total FDI outflows have continued to shrink. The global investment in the context of the epidemic has shrunk significantly, but in the post-epidemic era, along with the gradual economic recovery of each country (region), the demand for international investment is bound to rebound to a higher level, and this potential imbalance may lead to competition among economies to attract investment in the future.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
