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Based on the fact that input factors of production can not be completely replaced, a large number of outward direct investment leads to the fluctuation of jobs, income, growth of economy and inflation etc in home country. And these changes lead to the change of happiness of residents in home country to a large extent. Taking the case of China, using the Ordered Logit model, the paper analysis the effect of Chinese outward direct investment on the Chinese residents’ happiness. Results show that Chinese outward direct investment and domestic residents’ happiness are positively correlated, but the effect of outward direct investment on different people's happiness varies.

On the Effect of Outward Direct Investment on Home Country's Happiness