Research on the Impact of Institutional Distance on the Location Distribution of China’s Outward Foreign Direct Investment ——Empirical Analysis Based on Data from 47 Countries Along the “Belt and Road”
LIU Zhen-lin1,HUANG Kai2
1.School of International Trade and Economics, Jiangxi University of Finance and Economics, Nanchang 330013, China; 2.Zhengzai International Trade Co.,Itd, Shanghai, Shanghai 201306, China
Abstract：
This paper analyses the influence of institutional distance on the regional distribution of China’s direct investment with 47 countries along the “Belt and Road” as a sample. The results show that the economic institutional distance has little effect on China’s direct investment, while the legal institutional distance has a significant negative effect. Even after adopting the Ward system cluster analysis method to divide the economic system distance into two groups with high and low economic institutional differences, the above conclusion is still valid. In addition, China’s outward foreign direct investment has obvious inertial features. That is, the early investment will significantly affect the current investment, and follows the path of an export-oriented investment. Moreover, it tends to go to those countries or regions with lower exchange rate valuation, better infrastructure, and higher labor output.
LIU Zhen-lin,HUANG Kai.Research on the Impact of Institutional Distance on the Location Distribution of China’s Outward Foreign Direct Investment ——Empirical Analysis Based on Data from 47 Countries Along the “Belt and Road”[J] Economic Survey, 2019,V36(2): 64-71
2019 
