Research on the Quality of China's Outward Foreign Direct Investment on Economic Growth under the "Belt and Road" Initiative

Abstract

Under the background of "Belt and Road", the scale of China's outward foreign direct investment (OFDI) has been expanding rapidly, which has also driven the high-quality development of the domestic economy to a certain extent. On the one hand, this paper uses the entropy weight method to construct the indicators of high-quality economic development, covering three aspects of growth speed, stability and sustainability. On the other hand, from the perspective of the home country, this paper used multiple regression to analyse the direct impact of OFDI on the overall economic development, so as to provide new suggestions and new ideas for the formulation of macro policies. The study finds that OFDI under the background of "Belt and Road" has a positive influence on the quality of economic growth of the home country, which mainly reflects in the stability of economic growth and it’s efficiency. However, OFDI has a positive and negative impact on sustainability. Through the selection of resource efficiency and environmental governance indicators, it can be found that China still needs to optimise and upgrade its industrial structure in an environmentally friendly way.