RESEARCH AND DEVELOPMENT ANALYSIS ON THE IMPACT OF GLOBAL FINANCIAL RISKS ON CHINA’S OUTWARD FOREIGN DIRECT INVESTMENT — BASED ON THE EFFECT ANALYSIS OF COUNTRIES ALONG THE BELT AND ROAD

Based on the national financial risk data of 56 countries along the “Belt and Road” in the ICRG published by PRS and the values of 30 provincial-level administrative regions in China from 2003 to 2018, this paper explores the impact of international financial risks on OFDI in countries along the “Belt and Road”. After discussion, it is found that various factors of international financial risk have a significant impact on China’s OFDI, but there are great differences in the way of impact. (1). The host country’s debt repayment ability has a significant positive effect on China’s OFDI; (2). The stability of the exchange rate and the ratio of foreign debt to GDP have obvious negative effects on China’s OFDI, and there are significant differences between different models in account balance as a percentage of total exports; (3). There is an obvious phenomenon of “adverse selection” in our country’s investment in countries along the route, and we are facing relatively high international financial risks. In order to effectively defend against international financial risks faced by OFDI, it is necessary to continue to deepen domestic financial reform and opening up and enhance the ability to respond to international financial risks; Strengthen investment supervision before, during and after the event, and improve the level of financial risk prevention and control of multinational enterprises; Strengthening regional cooperation is conducive to jointly promoting the high-quality development of China’s economy. Jointly cope with the huge impact of international financial risks.