Author(s)

Yongpei Wu

Jinan University, Guangzhou, China.

This paper uses the China Global Investment Tracker database to map the investment panels of 31 countries along the “Belt and Road” in China, using the system GMM (generalised method of moments) estimation method to study the impact of host country corruption on Chinese OFDI (outward foreign direct investment). The conclusion is that the level of corruption in the host country and the Chinese OFDI total scale show a non-linear “U” relationship. From the perspective of intensive margin, the relationship between host country corruption and the average amount foreign investment from Chinese enterprises is not significant. From the perspective of extensive margin, corruption and the number of enterprises setting up factories in the host country also show U-shaped relationship, but the relationship with the number of investment industries is not significant.

OFDI, Corruption, GMM, Binary Marginal

Wu, Y. (2019) The Impact of Corruption on Chinese OFDI—Based on the Binary Marginal Perspective. Modern Economy, 10, 1671-1683. doi: 10.4236/me.2019.107109.