The Institutional Factor and Chinese Direct Investment in Developing Countries

This paper investigated the impact of institutional environment of the host country and the gap of institution between the host country and China on China's outward foreign investment by positivist research based on the Chinese direct investment in developing countries of 2003-2013, and following are some conclusions drown from the study: (1) Chinese outward foreign investment are inclined to the developing countries whose institutional environment is poor and has large differences from China, showing the "special" side of Chinese OFDI; (2) Chinese OFDI has obvious market motivation, market seeking motivation OFDI tend to choose areas whose institutional environment is poor, and the system quality of host country has negative influence on Chinese resource seeking motivation OFDI.