Research Article
A Study on the Impact of Host Country Political Risk on China's OFDI
@INPROCEEDINGS{10.4108/eai.19-5-2023.2334297, author={Xiaohan Zhao}, title={A Study on the Impact of Host Country Political Risk on China's OFDI}, proceedings={Proceedings of the 2nd International Conference on Bigdata Blockchain and Economy Management, ICBBEM 2023, May 19--21, 2023, Hangzhou, China}, publisher={EAI}, proceedings_a={ICBBEM}, year={2023}, month={7}, keywords={political risk; ofdi; gravity model; quality of economic system; moderating effect}, doi={10.4108/eai.19-5-2023.2334297} }- Xiaohan Zhao
Year: 2023
A Study on the Impact of Host Country Political Risk on China's OFDI
ICBBEM
EAI
DOI: 10.4108/eai.19-5-2023.2334297
Abstract
Using the panel data of China's OFDI in 107 host countries from 2010-2021, this paper explores the impact of host country political risk on China's OFDI by constructing an expanded gravity model, and on this basis, introduces the interaction term between host country political risk and economic system quality, and discusses the effect of economic system quality on the relationship between political risk and China's The moderating effect of the impact between political risk and OFDI in China is discussed. It is found that the political risk of host countries can significantly inhibit China's OFDI to them; the investment motivation of China's OFDI to host countries with different levels of political risk varies, and the quality of economic system inhibits China's OFDI in host countries with low political risk. It is beneficial for China to understand and prevent political risks in host countries and to differentiate investment strategies according to countries with different levels of risks
