Study of the Legal System Motivation of China’s OFDI——Extended Gravity Model of Panel Data Empirically Test
XIE Meng-jun1,2, SHAN Ting-ting3
1.International Business College, Shandong Institute of Business and Technology, Yantai 264005, China;2.Center of Economic Research, Shandong University, Jinan 250100, China; 3.Business School, Hohai University, Nanjing 210098, China
Abstract：
Through embedding the legal system in expanded gravity model, and using 58 representative countries’ (or regions’) panel data of 2003-2011, the paper empirically studies the effect of investor and investment in the host countries’ (or regions’) legal system to China’s OFDI. The empirical results verify the correctness of the traditional investment gravitational model, and at the same time think that China's OFDI has the motivation of legal system seeking; the operating environment of legal system and protection of private property rights of the host country (or region) have larger gravity on China’s OFDI; now legal sophistication and property protection degree of China are relatively low; it is an important factor in boosting OFDI. The conclusion of the study has a certain reference value to the government OFDI strategies and the optimization of the geographical structure of outward foreign investment.
XIE Meng-jun,SHAN Ting-ting .Study of the Legal System Motivation of China’s OFDI——Extended Gravity Model of Panel Data Empirically Test[J] Economic Survey, 2014,V31(4): 62-67
2014 
