Open AccessStudy on the relationship between China's foreign direct investment and the host state-owned business environment
Author(s) -
Yangzi Dongmu
Publication year - 2021
Publication title -
bcp business and management
Language(s) - English
Resource type - Journals
ISSN - 2692-6156
DOI - 10.54691/bcpbm.v14i.130
Subject(s) - foreign direct investment , openness to experience , china , control variable , corporate governance , business , variables , regression analysis , host (biology) , economics , economic system , finance , macroeconomics , geography , psychology , social psychology , ecology , statistics , mathematics , archaeology , machine learning , biology , computer science
The business environment of the host country is an important factor for every enterprise in the country of exporting foreign capital. In this study, the host country's business environment is the independent variable, China's OFDI stock of the host country is the dependent variable, and then several control variables are added to build the econometric model of China’s OFDI and the host country's business environment, collected data of 27 countries from 2009 to 2017 for empirical research, the results show that among the five variables representing the host country's business environment, in addition to commercial environmental regulation, the other four The variables macroeconomic management, legal governance, social protection and the quality of the trade environment are positively correlated with China's OFDI stocks, but only the regression coefficients of the two variables of commercial environmental regulation and legal governance are significant. The regression coefficient of market size and openness in the control variables is positive and significant.