Abstract Based on the data of China and the countries along the “Belt and Road Initiative” from 2005-2017, this paper empirically examines the influence of the factor endowment differences and the institutional distance on China’s OFDI in the countries along the “Belt and Road Initiative”. The results show that compared with labor differences, human capital differences and natural resources differences have an inhibitory effect on China’s OFDI in countries along the “Belt and Road Initiative”, tangible capital differences and technological differences show a positive impact, and institutional distance increases China’s tendency to invest directly in countries along “Belt and Road Initiative”. In addition, the heterogeneity grouping test confirms that the influence of different levels of samples of the factor endowment differences and institutional distance on China’s OFDI exists institutional distance multidimensionality, regional heterogeneity and national differences. In a word, the results of the interactive terms test shows that China’s location choice of OFDI for countries along the “Belt and Road Initiative” is affected by the interaction between factor endowment differences and institutional distance, in which there is a substitution relationship between institutional distance and human capital difference, and there is a complementary relationship between institutional distance and natural resource difference.
YAO Huibin,ZHANG Yabin. Factor Endowment Differences, Institutional Distance and China’s Location Choice of OFDI for Countries along the “Belt and Road Initiative”. Economic Survey, 2021, 38(1): 066.
2021, Vol. 38 
