Proceedings of the 2nd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2023, September 1–3, 2023, Chongqing, China

Research Article

A Study on the Influence of Linguistic Distance on China's Outward Foreign Direct Investment

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  • @INPROCEEDINGS{10.4108/eai.1-9-2023.2338756,
        author={Dongxue  Wei and Lei  Yao},
        title={A Study on the Influence of Linguistic Distance on China's Outward Foreign Direct Investment},
        proceedings={Proceedings of the 2nd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2023, September 1--3, 2023, Chongqing, China},
        publisher={EAI},
        proceedings_a={ICPDI},
        year={2023},
        month={11},
        keywords={linguistic distance odfi cost theory},
        doi={10.4108/eai.1-9-2023.2338756}
    }
    
  • Dongxue Wei
    Lei Yao
    Year: 2023
    A Study on the Influence of Linguistic Distance on China's Outward Foreign Direct Investment
    ICPDI
    EAI
    DOI: 10.4108/eai.1-9-2023.2338756
Dongxue Wei1, Lei Yao1,*
  • 1: Beijing Institute of Fashion Technology
*Contact email: csxqzl1929@outlook.com

Abstract

This paper will introduce linguistic distance as a key variable and select the top 20 countries in China's Outward Foreign Direct Investment stock from 2012 to 2021 as samples to build a fixed effect model to explore the relationship between linguistic distance and China's OFDI stock. The conclusion shows that linguistic distance has a significant negative relationship with China's OFDI stock. this paper also puts forward some targeted suggestions at the national level and the enterprise level.