Research on the Influence of Host Country’s Economic Policy Uncertainty on China’s OFDI

Abstract

The influence of host county economic policy uncertainty (EPU) on China’s outward foreign direct investment is examined in this article (OFDI). The impact of host country economic policy uncertainty on China’s OFDI is investigated using panel data from Chinese OFDI to 20 important investment countries from 2011 to 2020. A fixed effects model is used, with the host country’s economic policy uncertainty as the main explanatory variable and six significant variables chosen as control variables. According to the results of the empirical analysis, the host country’s economic policy uncertainty will inhibit investment from the home country to that country.