The Impact of Institutional Environment on China's Outward Foreign Direct Investment in the Countries Along 'The Belt and Road'

摘要

Since "the Belt and Road" initiative was launched in 2013, China's outward foreign direct investment has developed rapidly. And the impact of the institutional environment on China's outward foreign direct investment has received widespread attention. This paper selects panel data from 24 representative countries along "the Belt and Road" from 2003 to 2018 to investigate the impact of institutional environment including political environment, business environment and investment environment on the location choice of China's outward foreign direct investment. The study found that the political environment, business environment and investment environment all have a significant positive impact on China's outward foreign direct investment in the countries along "the Belt and Road". Studies have shown that, Chinese enterprises are sensitive to changes in the institutional environment. Chinese enterprises prefer to invest in countries along "the Belt and Road" with better political environment, business environment and investment environment.