Font Size: a A A

Research On The Influence Of Financing Constraint On OFDI Of Chinese Industrial Manufacturing Enterprises

Posted on:2020-07-08Degree:MasterType:Thesis
Country:ChinaCandidate:M DongFull Text:PDF
GTID:2439330602966988Subject:Finance
Abstract/Summary:PDF Full Text Request
In October 2017,the 19th National Congress of the Communist Party of China(CPC)put forward the development strategy of "bringing in,and "going global".Therefore,Chinese enterprises take the initiative to explore their development path,and actively implement the strategy of OFDI while receiving fdi.According to the report of the Ministry of Commerce,Chinese enterprises not only realized the income from OFDI in 2017,which amounted to 69.64 billion us dollars,an increase of 127%compared with 2016,but also made significant contribution to the marginal tax revenue and marginal employment in the countries where they invested,including 37.6 billion us dollars in tax revenue and 1.71 million more jobs,achieving a win-win situation.At present,China’s OFDI stock has become the second largest in the world,and its OFDI flow ranks the third in the world.Manufacturing enterprises are the main force of China’s OFDI,accounting for 31.8%of total OFDI.Due to the existing problems of China’s OFD:I,enterprises’ access to the international market is restricted,Of China’s more than 300,000 industrial and manufacturing enterprises,only a few thousand can participate in OFDI.According to the survey results,70%of enterprises agree that financing constraint is the primary reason for restricting their OFDI.Therefore,this paper studies the impact on OFDI from the perspective of financing difficulties faced by enterprises,which not only adds a new perspective to the research in this field,but also enriches the research content,which has certain theoretical significance.At the same time,it provides a research basis for the government to formulate relevant policies and help enterprises to participate in the international market,which has certain practical significance.In view of the relationship between financing constraints and OFDI,this paper makes theoretical analysis and empirical analysis by combining literature research method,qualitative research method and empirical research method.Prose are arranged as following:first,analysis of the background and the present situation of foreign direct investment in China,the review and summary on the impact of financing constraints on enterprise internationalization behavior and the influencing factors of enterprise of foreign direct investment and ease the financing constraints for enterprise’s foreign direct investment(FDI)inhibition of the related countermeasure Suggestions from three aspects of literature;Secondly,the paper expounds the theoretical basis of financing constraint and discusses its internal influence mechanism on OFDI.Thirdly,this paper selected manufacturing industrial enterprises that participated in OFDI from 2007 to 2018 as samples,adopted fixed effect model and GMM estimation method,and empirically analyzed the relationship between them.Considering the heterogeneity of enterprises,the samples were divided into state-owned enterprises and non-state-owned enterprises,and the impact of financing constraints on OFDI of enterprises with different property rights was compared.Due to the different degree of financial development in the region where the enterprises are located,the impact of financing constraints on OFDI is also different.Therefore,the samples are divided into eastern enterprises,central enterprises and western enterprises for comparative analysis.Finally,based on the conclusion of theoretical analysis and empirical analysis in this paper,the paper puts forward corresponding policy Suggestions for improving the financing constraints faced by manufacturing industrial enterprises.The research finds that:first,the financing constraints faced by manufacturing industrial enterprises will significantly inhibit the scale of their OFDI.The stronger the financing constraints are,the greater the inhibition effect on OFDI will be.Second,compared with non-state-owned enterprises,state-owned enterprises have a relatively low productivity and financing constraints have a relatively large inhibitory effect on their OFDI.Third,due to the different degrees of regional financial development,enterprises in the eastern region with the highest degree of financial development face the least financing constraints and the least degree of restraint on their foreign direct investment.And the enterprise that is located in western region,its influence degree is far bigger than eastern region.Therefore,government departments should formulate differentiated policies for enterprises facing different financing constraints,such as establishing preferential tax policies,strengthening regional financial openness,and broadening reasonable financing channels,so as to better guide enterprises facing strong financing constraints to conduct OFDI.Compared with previous literatures,this paper’s main contributions focus on the following three points:first,this paper selects more comprehensive sample data and adopts the fixed-effect model to explore the relationship between financing constraints and OFDI,making the empirical results more reliable.Secondly,this article was to explore the financing constraints and the relationship between foreign direct investment,on the basis of the degree of heterogeneity and regional financial development from the enterprise double Angle further comparison and analysis the enterprise financing constraints impact on the effect of foreign direct investment and internal mechanism,makes the research conclusion is more comprehensive,widened the research depth.Finally,on the basis of theoretical and empirical research,this-paper puts forward the government suggestion of establishing OFDI fund and expands the existing policy Suggestions.
Keywords/Search Tags:Manufacturing industry, Financing constraints, Outward direct investment, Nature of property rights, Financial development
PDF Full Text Request
Related items