This paper sorts out the relationship between absolute institutional factors and bilateral institutional distance and the location choice of Chinese OFDI, including the methods of measuring absolute institutional quality and institutional distance, and the impact of institutional quality or institutional distance on the location choice of Chinese OFDI. Currently, there is no unified standard for measuring institutional quality and calculating institutional distance, but scholars mainly use the World Governance Indicators (WGI) to measure institutional quality and bilateral institutional distance. Regarding institutional quality, there is no uniformity in the impact of the bilateral institutional environment on China's OFDI, and there are even opposing views. There are institutional risk aversion and institutional risk preferences regarding institutional quality, and institutional escape and institutional proximity theories regarding institutional distance. As research progresses, more and more scholars are also aware of the need for heterogeneity analysis of countries, regional industries, etc.

Xueqing Zhu. Institutional Environment, Institutional Distance and Chinese OFDI - A Literature Review. Academic Journal of Business & Management (2022) Vol. 4, Issue 12: 78-83. https://doi.org/10.25236/AJBM.2022.041214.

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