Author(s)

Qinxuan Wang

Nanjing Normal University, Nanjing, China.

This paper uses panel data of 20 target countries of China’s outward foreign direct investment (OFDI) from 2011-2019 to establish a stochastic frontier gravity model to study the influencing factors of China’s OFDI and to define and measure the investment potential by summarizing and generalizing the relevant literature. The results show that: Chinese GDP, host country GDP, host country trade openness, host country government governance capacity, and host country intellectual property protection level are positively correlated with Chinese OFDI; national investment guidance policies have a very obvious positive effect on the growth of Chinese outward investment. In the post-epidemic era, in order to promote the development of Chinese OFDI and fully exploit the potential of Chinese OFDI, we should strengthen macro and micro regulation to ensure a stable and high-quality economic development, actively introduce national investment policies to cope with changes in the international investment policy environment, optimize the investment industry structure, and avoid investment risks.

Outward Foreign Direct Investment, Stochastic Frontier Model, Chinese Enterprise

Wang, Q. (2021) Analysis of Factors Affecting Chinese Outward Foreign Direct Investment: An Empirical Study Based on Stochastic Frontier Model. Open Journal of Social Sciences, 9, 12-25. doi: 10.4236/jss.2021.93002.