Research on the Influencing Factors, Location Selection and Risk of Chinese Foreign Direct Investment ——Based on the Empirical Analysis of 52 Countries along "The Belt and Road"

Abstract

In this paper, we analyzed the data of 52 countries along “The Belt and Road” by applying the panel random effects model, and explored the influencing factors of Chinese foreign direct investment location choice, and on the basis, analyzed the risk of Chinese foreign direct investment. The empirical results show that the quality of labor force in the host countries, the investment in fixed assets, the degree of opening up, the participation in the multilateral and bilateral mechanisms, and the bilateral relations have a significant facilitating role on Chinese foreign direct investment. However, the degree of industrialization in the host countries and the distance between Beijing and capitals of other countries have a negative effect on Chinese foreign direct investment. In order to enhance the competitiveness of Chinese multinational investment enterprises and effectively prevent the risks of output foreign investment, we should take the following measures: Government, industry, university and research institutions should mutual collaborate, and strengthen the research on countries along “The Belt and Road”; We should develop and maintain good bilateral relations with countries along “The Belt and Road”; We should improve Chinese export credit insurance system and improve the level of risk protection.