scholarly journals An Empirical Analysis on the Country Differences Trade Effect Of China's Outward Foreign Direct Investment to 10 countries of EU based on the "One Belt and One Road"

Author(s):  
Zewen Duan
Author(s):  
Yuanbing Zhu ◽  
Xueying Chen ◽  
Gang Wang ◽  
Zuchang Zhong ◽  
Meier Zhuang

From the practice of developed countries, countries with higher patent applications and PCT patent applications (such as the United States, China, Japan, the United Kingdom, Germany, etc.) have relatively higher outward foreign direct investment, and the actual data of provinces in China also show that with the improvement of the patent level in various provinces and cities, the intensity of outward foreign direct investment in each province and city has also increased. At present, there are relatively few research data and the research method is relatively single. Therefore, collecting panel data on China’s 31 provinces from 2003 to 2016, this paper conducts an empirical analysis on the influence of patent level on outward foreign direct investment via analytical method of equal part linear regression and Grey Computing. By comparing analysis results with the model and the results with conventional linear regression model, the difference of different regression models is observed. Furthermore, the impact of China’s patent level on China’s inter-provincial outward foreign direct investment is further analyzed.


2018 ◽  
Vol 10 (9) ◽  
pp. 3264 ◽  
Author(s):  
Lili Kang ◽  
Fei Peng ◽  
Yu Zhu ◽  
An Pan

This paper investigates the effect of the One Belt One Road (OBOR) initiative on China’s outward foreign direct investment (OFDI) using a dataset of all host countries for the period of 2010–2015. The employed econometric technique combines a difference-in-differences estimator with matching techniques. The results show that China’s OFDI in OBOR countries is about 40% higher than in non-OBOR countries. After the initiative, the OFDI from China increases by 46.2% in OBOR countries. However, after controlling for the heterogeneity across OBOR and non-OBOR countries using the matching approach, the significance of the increasing effect caused by the OBOR initiative disappears. We also find the OBOR initiative diminishes the resource-seeking motivation and improves the market-seeking motivation of China’s OFDI. Our results cast doubts on the infrastructure-led and institution-based strategy of the OBOR initiative, but support the boosting effect of the OBOR initiative on institutional cooperation and cultural convergence. Thus, the OBOR initiative is a sustainable continuation and development of the long tradition of economic, institutional, and cultural convergence with the OBOR countries, rather than a temporary policy shock.


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