Research on OFDI Model of Chinese Enterprises under "the Belt and Road"—Based on political, cultural and institutional distance

Based on the political, cultural and institutional distance between the host country and China, this paper studies OFDI mode of Chinese enterprises. Chinese A-share enterprises’s 129 OFDI behaviors from 2005 to 2018 were used for a multivariate Logit regression analysis which involved 41 countries along “the Belt and Road”. The results show that the greater the political distance and normative distance are, the more enterprises choose cross-border M&A and compared with joint ventures, enterprises tend to be sole proprietorship; The greater the cultural distance and regulatory distance are, the more enterprises tend to be greenfield joint ventures. Finally, the paper put forward some suggestions for enterprises.

“the Belt and Road”; OFDI; Investment Model; Political Distance

Zhang Wei, Bu Wei. Research on OFDI Model of Chinese Enterprises under "the Belt and Road"—Based on political, cultural and institutional distance. 2019 Asia-Pacific Forum on Economic and Social Development (APFESD 2019). 2019, Vol.2: 40-44.