Research on the Impact of Host Country Institutional Environment on the Efficiency of China's Foreign Direct Investment——Based on empirical data from EU countries

Abstract

New institutional economics incorporates institutions into the scope of economic research, believing that institutional factors that have been overlooked in the study of economic growth factors may also play a decisive role. With the continuous acceleration of economic globalization, economic and trade exchanges between countries are becoming increasingly frequent. The vigorous development of information technology and transportation industry has gradually weakened the position of traditional geographical distance and other influencing factors in bilateral investment. The importance of non-traditional factors such as the institutional environment of the host country in bilateral investment is becoming increasingly prominent. The EU is an important destination for China's outward direct investment. This article takes the institutional environment of EU countries as the starting point and conducts empirical analysis based on the World Bank Worldwide Governance Indicators to analyze the impact of host country institutional factors on the efficiency of China's direct investment.