However, among global foreign investment, the failure rate of Chinese enterprisesâ??\nforeign direct investment has remained high. By analyzing the tracking\ndata of Chinaâ??s large-scale foreign investment in 2005-2016, this paper studies\nthe relationship between institutional distance, bilateral political relations and\nthe success or failure of Chinese enterprisesâ?? foreign direct investment. The\nresults show that institutional distance and bilateral political relations have a\nsignificant impact on the success or failure of foreign direct investment, and\nbilateral political relations have a negative regulatory effect on the relationship\nbetween institutional distance and the success or failure of foreign investment.\nThe nature of corporate property rights will also play an important\nrole in the regulation of bilateral political relations.
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