Political Differences and the Chinese Foreign Direct Investment Risk---Empirical Test from Some Countries along "the Belt and Road"

DOI

10.2991/meici-16.2016.26How to use a DOI?

Keywords

Political difference; FDI; The Belt and Road; Risk

Abstract

Objective: The purpose of this paper is to point out that there is a certain risk for China when investing to the countries along the Belt and Road, and mainly examined the impact of the political differences from investment object countries on China's foreign direct investment risk. Method: first, this paper puts forward the theoretical hypothesis, and then simulates the study of John and others in 2008, constructs a national risk model to verify the theoretical hypothesis. Finally, making use of the 2005-2014 five countries' foreign direct investment data along "China's Belt and Road", and an empirical analysis of the influence of political differences from investment object countries on China's foreign direct investment risk with SPSS software regression analysis. Results: according to the results of regression analysis, the coefficients of the three variables are -0.345, -3.212, -8.402, which showed the same results. Generally speaking, the higher the political quality is, the lower the risk of China's foreign direct investment will be. The limitation of this paper is not to make full use of all countries data along "the Belt and Road" and the representative of the research results need further verification. Conclusion: Investment target country's political more stable, higher government efficiency and better control of corruption, the lower the risk of China's foreign direct investment. The results provide the theoretical guidance for the political risk in the country's direct investment along "China's Belt and Road".

Copyright

© 2016, 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  - Jingfeng Zhao
AU  - Dandan Song
PY  - 2016/09
DA  - 2016/09
TI  - Political Differences and the Chinese Foreign Direct Investment Risk---Empirical Test from Some Countries along "the Belt and Road"
BT  - Proceedings of the 2016 6th International Conference on Management, Education, Information and Control (MEICI 2016)
PB  - Atlantis Press
SP  - 127
EP  - 131
SN  - 1951-6851
UR  - https://doi.org/10.2991/meici-16.2016.26
DO  - 10.2991/meici-16.2016.26
ID  - Zhao2016/09
ER  -