The Impact Of Credit Scale On FDI Spillover Effect

The Reform and Opening-up policy and accession to the WTO are two important turning points in China's economic development,both of which are accompanied by the massive influx of FDI and the reform of the financial system.The impact of FDI on economic development has long been studied by many scholars,and the fact that FDI can significantly boost economic growth is widely recognized by scholars,which is known as FDI Spillover Effect academically.At the same time,with the in-depth study of FDI Spillover Effect,some scholars have derived the mechanism of FDI spillover effect in detail,and some scholars look for the factors influencing FDI spillover effect,so as to give countermeasures to enhance FDI Spillover Effect.I noted the financial system reform and the strengthening of financial strength after the Reform and Opening-up policy,currency is the blood in the commercial system,financial development represents the ecological environment of blood,blood transport efficiency,cardiac hematopoietic function.Financial significantly affects the efficiency of the commercial system,resulting in different economic development.The scale of credit can best represent the level of financial development in recent decades.Will credit scale have an impact on FDI Spillover Effect?At the same time,manufacturing industry is the fastest growing industry since the Reform and Opening-up policy.Manufacturing has just caught up with the wave of economic globalization.China has become the world's factory,undertaking the manufacturing industry transferred from the industrial upgrading of many developed European and American countries.Therefore,it is an industry greatly affected by foreign capital.So,manufacturing industry is worthy of detailed research.Based on the panel data of 30 provinces from 2004 to 2016,this paper analyzes the impact of credit scale on FDI Spillover Effect of China's manufacturing industry and its threshold characteristics.The national sample group and the central sample group both have two threshold values.After crossing the second threshold value,the negative effect of credit scale on FDI spillover in manufacturing industry was changed to positive effect.There is only one threshold value in the western region,and there are two thresholds in the eastern region group.After the eastern region crossed the larger threshold variable and the western region crossed the single threshold,the negative FDI spillover effect of credit scale on the manufacturing industry was greatly weakened.So the conclusion of this paper is that material capital and human capital are still the most important factors influencing the increase of the output of China's manufacturing industry and credit scale has threshold effect on FDI spillover effect in manufacturing industry.Also,there is regional difference in this threshold effect.Therefore,targeted measures should be taken to improve the scale of regional credit.According to the current situation of provinces crossing the threshold value,the credit scale in the central region has a restraining effect on FDI Spillover Effect.We should increase financial support for the central region,optimize its level of credit scale in terms of scale and structure,and help the central region cross the threshold of negative to positive development.