The Impact of the "Belt and Road " Countries’ Financial Ecology on China’s OFDI
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Gulinaer Yusufu, Zenatiguli Tuerxun
The financial ecology of the countries along the "Belt and Road" has the great impact on the decision of China’s OFDI. Based on the random effects model, this paper measures the financial ecology level of 47 countries along the "Belt and Road" using the data from 2003 to 2020. The results show that after overcoming the endogeneity problem, the financial ecology of "Belt and Road" countries plays a significant role in promoting China's OFDI, among which the financial environment has the most obvious impact on OFDI. The heterogeneity analysis concludes that the impact of financial ecology on China's OFDI varies from country to country. The Central and Eastern Europe has a relatively good financial ecology environment and a relatively high degree of financial activity. Therefore, China’s OFDI should flow more to the Central and Eastern Europe with a better financial ecology environment.
"Belt and Road"; financial ecology; OFDI