An empirical study on location selection for ODI of China's bulk commodities an example of agricultural products

First, we selected the data of 71 countries, from 2003 to 2008, to verify the relationship between Chinese agricultural enterprises' outward direct investment (ODI) and the exports of agricultural products. The results indicate that the above two is positively related. Second, we built a panel data model, using the data of 64 countries from 2003 to 2007, to indirectly study the factors which influence location choice of Chinese agricultural enterprises' ODI. The conclusion is that GDP, GDP per capital, arable land per capita of the host countries significantly effect Chinese agricultural ODI. Finally, we borrowed the method of principal component analysis to decide each factor's weight and deduced an assessment formula. Then, we figured out the index and made the location choice.