Research on the Influential Factors to China’s Direct Investment in Russia Under the Background of the Belt and Road Initiative

DOI

10.2991/aebmr.k.201211.010How to use a DOI?

Keywords

Belt and Road, crude prices, direct investment, VAR model

Abstract

With the in-depth development of the strategic partnership of coordination between China and Russia under the “Belt and Road” initiative, the breadth and depth of Chinese enterprises’ investment in Russia has further expanded. Based on time series data, this paper empirically analyzes the main factors affecting China’s direct investment in Russia by establishing a VAR model. In addition to selecting three traditional economic factors: Russian economic scale, Sino-Russia import and export trade and the prices of Russian production factors, the model also introduces two new variables: China’s contracting projects to Russia and the international crude prices. The empirical results show that the prices of Russian production factors have a negative impact on China’s direct investment in Russia. Other variables have a positive impact on China’s direct investment in Russia. Therefore, it is proposed that the Chinese government should optimize the economic and trade cooperation projects between the two countries; strengthen the cooperation with Russia in the field of science and technology under the guidance of the “Digital Silk Road”. The Russian government should actively build new growth points for Sino-Russian economic and trade cooperation; improve the local financial service system. Chinese enterprises investing in Russia should pay more attention to Russian domestic product demands; actively fulfill social responsibilities.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Weiyi Zhang
AU  - Huili Yang
AU  - Yuxin Zou
PY  - 2020
DA  - 2020/12/14
TI  - Research on the Influential Factors to China’s Direct Investment in Russia Under the Background of the Belt and Road Initiative
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 52
EP  - 56
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.010
DO  - 10.2991/aebmr.k.201211.010
ID  - Zhang2020
ER  -