Analysis Of the Impact of Anti-Globalization on China's OFDI

Abstract

Based on the KOF index of the Economic Research Institute of ETH Zurich, the degree of "anti-globalization" of countries around the world is derived, and China's OFDI data to 96 countries around the world from 2007 to 2019 are used to empirically test the effect of the degree of "anti-globalization" of host countries on Using the data of China's OFDI to 96 countries from 2007 to 2019, we empirically test the impact of the degree of "reverse globalization" of host countries on China's OFDI. The study shows that: (1) the degree of host country's "anti-globalization" from three different perspectives, namely, economic globalization index, social globalization index and political globalization index, has a negative impact on China's OFDI. (2) The impact of the degree of "reverse globalization" on OFDI is different between developed countries and developing countries, with the former in the economic dimension and the latter more in the political dimension. (3) China's OFDI is more sensitive to the negative shocks caused by "reverse globalization" in developed countries, but resource endowment and labor capital in developing countries are important factors. Finally, from the empirical findings, policy suggestions are made to cope with the impact of "reverse globalization" and deepen China's opening-up strategy.