The Research About Outward Foreign Direct Investment Location of China

Abstract

With the opening reform of China, more and more firms start to invest in foreign countries. This paper has a brief summary of the international investment theory and reviews the FDI location research of scholars at home and abroad. The statistics are adopted from 43 countries from 2003 to 2011, and then we have an empirical study of the OFDI location of China from the angle of the influence of the fuel, the GDPP, the institution and the trade between the two countries. The conclusion is that China prefers developed countries with good resource and poor institutions and developing countries with abundant resources and good institutions.