Institutional Factor Affecting on China’s Outward Foreign Direct Investments Stocks of “OBOR” Countries using an Empirical Test of Panel Data with Gravity Model
The study analyzed that impacts of institutional factors on China's OFDI stocks during 2008-2017 by using panel data of 37 countries along “OBOR”. First, panel unit root test is applied to check the stationary of data. Second, estimated the whole sample based on countries with pooled regression model, fixed effect model and random effect model respectively. At last. LR test and Hausman test showed that fixed model is more appropriate in this study. The regression result indicates that the institutional factors are indeed important factors affecting China's OFDI stocks. The economic institution factors and Political Stability and Absence of Violence, Regulatory Quality, Market Scale of Host Country have positive impact on China's OFDI stocks, the law institutional factors and, Voice and Accountability, Distance between China and Host Countries, Cultures Institutions have negative impact on China's OFDI stocks.
Keywords - Institutional Factors, Panel Data, Fixed Effect Model, OFDI Stocks.