Research on the Impact of China's OFDI to RCEP Countries from the Perspective of Country Distance
DOI:
https://doi.org/10.54097/hbem.v8i.7245Keywords:
RCEP; country distance; OFDI.Abstract
The official implementation of RCEP has created opportunities and conditions for China's OFDI. This paper comprehensively analyzes the influencing factors of China's OFDI to RCEP countries based on three dimensions of country distance: geographical distance, economic distance and institutional distance. It is found that: the greater the gap between institutional distance and geographical distance between RCEP parties and China, the more China tends to make direct investment to them, and China's direct investment behavior to RCEP countries is not significantly influenced by economic distance. From the sub-regional regression results, the key factors and utilities affecting OFDI are different in the three regions of RCEP member countries. ASEAN countries, Australia and New Zealand are mainly influenced by a combination of economic distance and institutional distance, where institutional distance promotes our OFDI behavior, while economic distance plays a hindering role. China's OFDI to Japan and South Korea is mainly hindered by institutional distance, and OFDI in all three regions is not significantly influenced by geographical distance.
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