The Impact of Cultural Distance and Friendly Cities on China's Outward For-eign Direct Investment:An Empirical Study Based on the Countries along the"Belt and Road"
Under the background of high quality development of"belt and road",the relationship between sis-ter cities and cultural factors have become a key link of unique influence.Based on the theory of outsider dis-advantage and transaction cost,this paper constructs an extended gravity model to evaluate the mechanism of cultural distance and sister cities influencing OFDI in China,as well as the interaction mechanism between them.The results show that cultural distance hinders foreign direct investment,and the increase in the number of sister cities weakens the negative impact of cultural distance on OFDI,which has a positive regulatory role;the positive regulatory role of sister cities in promoting OFDI is more effective for countries with closer cultural distance.Therefore,China should promote the network construction of sister cities,enhance cultural communi-cation,promote Chinese OFDI quality development.
cultural distancesister citiesoutward foreign direct investmentregulatory effect
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