Analysis of the Impact of Psychic Distance on the Regional Selection of Chinese Outward Foreign Direct Investment

DOI

10.2991/sschd-16.2016.9How to use a DOI?

Keywords

OFDI; Psychic Distance; Culture Distance

Abstract

The paper chose the seven dimensions of psychic distance ,that is language distance, religion distance, culture distance, industrialization distance, political distance, education distance and geographic distance as independent variables, and the paper analyzed the conduction mechanism to OFDI from the seven dimensions. Using China's OFDI data from 2004-2013 as dependent variables, and calculating 3 control variables demonstrate OFDI'S motivations, the paper implemented positive analysis by using regression method. Conclusion shows that language distance affects China's OFDI mostly, and the influence from political distance is the second largest, and the influence from culture distance is the smallest. That proves language barriers and political barriers are the most difficult for Chinese multinational enterprises to overcome. The linear positive correlation of industrialization distance with China's OFDI demonstrates the seeking for strategic asset plays more and more important role in China's OFDI process, and the new tendency need to be paid attention.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Man-Yu Huang
PY  - 2015/12
DA  - 2015/12
TI  - Analysis of the Impact of Psychic Distance on the Regional Selection of Chinese Outward Foreign Direct Investment
BT  - Proceedings of the 2nd Annual International Conference on Social Science and Contemporary Humanity Development
PB  - Atlantis Press
SP  - 46
EP  - 51
SN  - 2352-5398
UR  - https://doi.org/10.2991/sschd-16.2016.9
DO  - 10.2991/sschd-16.2016.9
ID  - Huang2015/12
ER  -