This paper selects 2008-2017 years of relevant investment data and uses the\nexpanded gravity model to conduct an empirical analysis to explore the\nmoderating effect of Chinaâ??s investment motivation and institutional distance\non the countries with different levels of development along the â??Belt\nand Roadâ?. The main innovation of this paper is to classify the countries in\ndifferent economic development stages along the â??Belt and Roadâ? countries.\nOn the basis of investment motives, this paper discusses how institutional\ndistance is used as a regulatory variable to affect the investment of different\nmotives. The results show that small distance between the host country and\nChinaâ??s normative system promotes the expansion of Chinaâ??s investment\nscale. The distance between regulatory regimes has a reverse regulatory effect\non investment driven by market size. For the middle and high income\ncountries, the negative impact of regulatory distance on labor force and\ntechnology factor-seeking investment is particularly significant, while for\nlow-income countries, regulatory distance has a very significant positive\nregulatory effect on natural resource-seeking investment. Finally, this paper\nprovides targeted recommendations based on the conclusions to help investors\nreduce risk. Investors should make good use of the effect of institutional\ndistance according to their own motives in order to reduce investment\ncosts and risks. Relevant departments need to further improve the\ndomestic regulatory environment and promote the development of OFDI in\nthe future.
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