Research On the Level of Unimpeded Trade of Countries Along The "The Belt and Road" And the Efficiency of China's OFDI

Abstract

Based on the panel data of 41 countries along the "the Belt and Road" from 2010 to 2017, this paper constructs the evaluation index of trade unblocked level, calculates the comprehensive score of trade unblocked level of countries along the "the Belt and Road" by using the principal component analysis method, and analyzes the trade unblocked level of countries along the "Belt and Road", and draws the following conclusions: the trade unblocked level of countries along the "Belt and Road" is mostly between 0.6-0.4, and even less than 0.4 in many countries, generally at a lower level, there is significant room for improvement. Then, through previous studies and relevant FDI theories, this paper further analyzes the impact of the level of unimpeded trade on the efficiency of China's OFDI, and uses Frontier4.1 software to regression it based on the panel data of 41 countries along the "the Belt and Road" from 2010 to 2017. The results show that there is a positive correlation between the two, that is, a country has a high level of unimpeded trade, The greater the possibility of China's OFDI, the greater the opportunity to improve local investment efficiency. Finally, on the basis of the previous analysis, this paper puts forward some suggestions on how to build the "the Belt and Road" in a quality and efficient manner, improve the level of unimpeded trade among countries, and improve the efficiency of China's OFDI.