Research On The Influence Of Financial Development On OFDI In China

Since the st century,with the development of world economic integration,the dependence between various economies has become higher and higher.Our country has responded to the situation,constantly accelerating the pace of opening up to the outside world,and achieved a series of fruitful achievements in the OFDI.In,China's total volume of goods trade ranked second in the world,and the actual use of foreign capital ranked first in developing countries.In recent years,China's OFDI has also made great achievements.Especially since the country launched the "One Belt and One Road" strategy in,China's OFDI has made considerable progress.However,there are still many problems in the development of OFDI in China,such as difficulties in company financing,information asymmetry,and insurance lagging,which restrict the further development of OFDI in China.Through the financial market can effectively solve the above problems.However,due to the short time for China's financial development,there is still a clear gap between our country and the developed countries.China's financial system currently has significant problems in both efficiency and structure.The limited support that the financial market can provide has led many companies to stop at OFDI,which has limited the further development of OFDI in China.Therefore,studying the impact of financial development on the development of OFDI in China,and taking effective measures has strategic significance to China's participation in global resource allocation,opening up and utilization of international markets,and upgrading its position in the global value chain.This paper mainly aims to solve the following problems: The mechanism of financial influence on OFDI..Measuring dimensions and indicators of financial development.How financial development efficiency,financial structure,and financial scale affected a country's OFDI.In response to the above problems,the paper first introduced the current status of OFDI development in China,and concluded that currently China's OFDI companies have many problems such as financial difficulties,asymmetric investment information,and lagging insurance.Secondly,introduced the statusof China's financial development and based on previous research results have divided financial development into three dimensions: financial scale,financial efficiency,and financial structure.Also have come to the conclusion that China's financial efficiency is currently developing at a low level and its structure is irrational.Then it describes financial development through productivity paths and information security affect china's OFDI.At the end of the article,an empirical study was conducted using relevant financial data from 1997 to 2016.It was concluded that financial scale 、financial structure and financial efficiency have a positive effect on OFDI,and made targeted recommendations for the conclusions.