An Empirical Study of Financial Development and China's Outward Foreign Direct Investment

doi:10.16382/j.cnki.1000-5579.2017.05.014

Abstract

Abstract:

This paper investigates the effect of financial development on China's OFDI by using panel data of 31 provinces during the period of 2004-2012.Firstly,examining the effect of financial development from the perspectives of indirect financing and direct financing on China's OFDI,the result shows that in general the size of credit market promotes China's OFDI significantly.Secondly,this paper further discusses the potential effect of long-existing financial repression in China on its foreign direct investment.The result shows that the financial repression does play a certain role on China's OFDI.This paper also examines the effects of financial development on OFDI of different regions.

Key words: financial development, direct financing, indirect financing, outward foreign direct investment

CHEN Lin, ZHU Yi-fan. An Empirical Study of Financial Development and China's Outward Foreign Direct Investment[J]. Journal of East China Normal University (Philosoph, 2017, 49(5): 117-124.

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