Abstract: Based on the constructed index of the development of digital economy along the Belt and Road route, this paper investigates the influence of digital economy development along the Belt and Road route on the locational choice of China’s outward foreign direct investment (OFDI), and at the same time discusses the heterogeneity and mechanism of the impact. The findings show that the digital economy has become an important locational factor of the host countries, and the locational choice of China’s OFDI prefers the host countries along the Belt and Road route with higher levels of digital economy development on the whole. In terms of regional heterogeneity, the developments of digital economy in Southeast Asia, West Asia and the Middle East have positive impacts on the locational choice of China’s OFDI, namely, it can promote China’s direct investment to this region; while the impact on the developments of digital economy in Central Asia, Mongolia and Russia are not significant, and it has produced inhibiting effects in South Asia and Central and Eastern Europe. In terms of the mechanism, the development of digital economy along the Belt and Road route can positively influence the locational choice behavior of China’s OFDI by improving the institutional quality and enhancing the human capital of the host countries. In the context of digital economy, these research conclusions are of great practical significance for China to realize high-quality joint construction of the Belt and Road through the locational choice of OFDI.

Key words: the Belt and Road initiative, digital economy, China’s outward foreign direct investment;, locational choice