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Business environment facilitation in RCEP countries and China’s OFDI: a mechanism analysis based on the depth of regional trade agreements

Author

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  • Sun, Meng
  • Yang, Jihong

Abstract

This paper empirically examines the impact of business environment facilitation in RCEP countries on China’s outward foreign direct investment (OFDI). The results indicate that improvements in the business environment significantly promote China’s OFDI, with the depth of regional trade agreements playing a crucial moderating role. Heterogeneity analysis reveals that this effect is more pronounced in non-ASEAN developed countries. The study provides theoretical and policy insights for optimizing the layout of China’s outward investment.

Suggested Citation

  • Sun, Meng & Yang, Jihong, 2025. "Business environment facilitation in RCEP countries and China’s OFDI: a mechanism analysis based on the depth of regional trade agreements," Finance Research Letters, Elsevier, vol. 86(PF).
    • Handle: RePEc:eee:finlet:v:86:y:2025:i:pf:s1544612325021154
    DOI: 10.1016/j.frl.2025.108862
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F15 - International Economics - - Trade - - - Economic Integration
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law

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