A Review of Research on the Impact of Financial Development on China's Outward Foreign Direct Investment

Lei He; Hualei Xi

doi:10.54097/e487en38

Authors

Lei He
Hualei Xi

DOI:

https://doi.org/10.54097/e487en38

Keywords:

Financial Development, Outward Investment, Influencing Factors.

Abstract

China's outward foreign direct investment continues to expand, and varying levels of financial development in host countries present differing degrees of risk to Chinese enterprises' overseas investments. This paper employs a literature review methodology to examine domestic and international approaches for measuring financial development indicators, revealing that no unified standard has been established for such measurements. It then analyzes the factors influencing China's foreign direct investment from the perspectives of host countries, home countries, and bilateral relations. Finally, it examines the impact mechanisms of financial development on China's foreign direct investment from both home country and host country viewpoints. Addressing shortcomings in existing literature, the paper offers corresponding research recommendations.

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