Legalization Level of RTA,Institutional Effect and China's OFDI
The conclusion of regional trade agreement(RTA)is of great significance for the promotion of China's outward foreign direct investment(OFDI).From the perspective of heterogeneity,this paper constructs a two-stage game model between transnational enterprises and host governments under the RTA framework,and theoretically clarifies the mechanism of the effect of RTA legalization level on OFDI.By assigning legalization level to RTA clauses and taking China's OFDI in 147 countries or regions from 2003 to 2019 as the research sample,the paper empirically tests the impact of legalization level of RTA on China's OFDI.The research shows that legalization level of RTA significantly promotes China's OFDI;the conclusion of RTA with high legalization level can compensate for the institutional deficiency in the host country and weaken the investment inhibition effect of bilateral institutional distance between the countries,thereby promoting the development of China's OFDI.The paper further subdivides and quantifies RTA clauses,and constructs the legal effectiveness index of heterogeneous clauses.The test results indicate that there is significant clause heterogeneity in terms of the promotion effect of legalization level of RTA on China's OFDI.Based on the above conclusions,the paper puts forward corresponding policy recommendations.
regional trade agreement(RTA)outward foreign direct investment(OFDI)legalization levelinstitutional effect
万方数据
维普
