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Academic Journal of Business & Management, 2022, 4(4); doi: 10.25236/AJBM.2022.040403.

An Empirical Analysis of the Influencing Factors of China's Direct Investment in Central and Western Asia under the COVID-19 Epidemica

Author(s)

Liuzhuang Yuan1, Jiaming Zhu2, Tingting Zhang1, Shiyu Meng3

Corresponding Author:
​Liuzhuang Yuan
Affiliation(s)

1School of International Economics and Trade, Anhui University of Finance and Economics, Bengbu 233030, Anhui, China

2School of Statistics and Applied Mathematics, Anhui University of Finance and Economics, Bengbu 233030, Anhui, China

3School of Business Administration, Anhui University of Finance and Economics, Bengbu 233030, Anhui, China

Abstract

Under the new crown epidemic, the Sino-US trade friction has made China's foreign trade and investment in trouble. The research on the factors affecting China's direct investment in Central and Western Asia is of great significance for China to break through the economic blockade and participate in the layout of the global value chain. This paper takes China's direct investment in nine countries in Central and West Asia as a sample, selects a total of 7 indicators from three aspects of expected return, investment cost, risk and uncertainty, and creates a multiple linear regression model for empirical analysis. The results show that the market demand scale and resource endowment level of the host country have a significant positive promoting effect, while the number of laborers in the host country has a significant negative inhibitory effect. Finally, some suggestions are put forward for China's foreign investment in order to promote the decision-making of enterprises and governments.

Keywords

new crown epidemic, Sino-US trade friction, global value chain, the Belt and Road, Central and Western Asia, China's foreign direct investment

Cite This Paper

Liuzhuang Yuan, Jiaming Zhu, Tingting Zhang, Shiyu Meng. An Empirical Analysis of the Influencing Factors of China's Direct Investment in Central and Western Asia under the COVID-19 Epidemica. Academic Journal of Business & Management (2022) Vol. 4, Issue 4: 11-17. https://doi.org/10.25236/AJBM.2022.040403.

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