Research on the Impact of Host Country Environmental Eegulations on China's OFDI under Different Investment Motivations——Empirical Research based on Panel Data of Asian Countries

Abstract

This paper takes the panel data of China's OFDI in 28 Asian countries from 2008 to 2019 as a sample to empirically verify the impact of host country environmental regulations on OFDI under different investment motivations from a macro perspective. The empirical results show that: (1) China has obvious market seeking motivation, natural resources seeking motivation, and efficiency-seeking motivation for OFDI of Asian countries; (2) The host country's environmental regulations have a significant inhibitory effect on China's natural resource-seeking and efficiency-seeking OFDI in Asian countries, and have a significant promotion effect on innovative asset-seeking OFDI, but have little impact on market-seeking OFDI; (3) In the long run, the impact of host country's environmental regulations on China's OFDI shows a significant U-shaped relationship.