Abstract:
Based on database of China’s OFDI enterprises,this paper studies the suitability of the existing environmental assessment models to China’s OFDI which are mainly introduced by advanced western countries.Empirically,the Fraser index and the World Governance Index are all found to be highly correlated and are incapable of explaining the location decisions of China’s OFDI.However,after reconstruction with principle component analysis,the reconstructed Fraser index can be used to explain and predict the destination choice for China's OFDI in the mining industries effectively.