IMPACT MECHANISM OF RESOURCE ENVIRONMENT ON OUTWARD FOREIGN DIRECT INVESTMENT

In this study, based on data for China's Outward foreign direct investment (OFDI) and the resource environments of related host countries announced from 2007 to 2018, we constructed an empirical model. First, we found that improving a host country's resource environment still had a significant impact on attracting China's OFDI. Secondly, we found that for host countries with rich resources, although improving the resource environment encouraged resource-driven OFDI, it had a crowding out effect on the introduction of market-driven OFDI. For host countries with poor resources, improving the resource environment had no obvious impact on resource-driven OFDI, but could have a positive impact on the market-driven OFDI. Therefore, improving the resource environment should help to expand OFDI and promote economic and trade globalisation eventually.