Proceedings of the 2022 3rd International Conference on E-commerce and Internet Technology (ECIT 2022)

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The Research on the Location Preference of China’s OFDI Flows–From the Perspective of the Country Risk

Authors
Qianxuan Huang1, *, Fengru Zhang2, Liyong Su2
1Honors College, Tianjin Foreign Studies University, 117 Machang Road, Hexi District, Tianjin, China
2School of International Business, Tianjin Foreign Studies University, 60 Dagang Xuefu Road, Binhai Area, Tianjin, China
*Corresponding author. Email: qhuang@tjfsu.edu.cn
Corresponding Author
Qianxuan Huang
Available Online 10 November 2022.
DOI
10.2991/978-94-6463-005-3_31How to use a DOI?
Keywords
China; OFDI; location; country risk; the belt and road
Abstract

China’s Outward foreign direct investment (OFDI) flows increased from 2.7 billion US dollars in 2002 to 196.15 billion US dollars in 2016, an increase of nearly 73 times. While after 2017, China’s OFDI flows declined because of the change of internal and external environment. This research uses panel data of China’s OFDI flows and ICRG country risk index range from 2003–2016 which is a period of China’s OFDI increasing to study the relationship between host country risk and China’s OFDI flows. The empirical results show that China’s OFDI flows are more likely to enter into the host countries with much higher or much lower country risk, political risk and economic risk. There is no significant correlation between financial risk and China’s OFDI flows. Meantime, China’s OFDI flows prefer host countries with higher human capital level, larger market size and more sound infrastructure. In general, China’s OFDI flows does not favor the Belt and Road countries compare to other host countries, although it keeps the high increasing rate of flows in these countries.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2022 3rd International Conference on E-commerce and Internet Technology (ECIT 2022)
Series
Atlantis Highlights in Engineering
Publication Date
10 November 2022
ISBN
978-94-6463-005-3
ISSN
2589-4943
DOI
10.2991/978-94-6463-005-3_31How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Qianxuan Huang
AU  - Fengru Zhang
AU  - Liyong Su
PY  - 2022
DA  - 2022/11/10
TI  - The Research on the Location Preference of China’s OFDI Flows–From the Perspective of the Country Risk
BT  - Proceedings of the 2022 3rd International Conference on E-commerce and Internet Technology (ECIT 2022)
PB  - Atlantis Press
SP  - 316
EP  - 325
SN  - 2589-4943
UR  - https://doi.org/10.2991/978-94-6463-005-3_31
DO  - 10.2991/978-94-6463-005-3_31
ID  - Huang2022
ER  -