Research On The Impact Of Financial Ecological Diversity On OFDI In China

As one of the important sources of economic growth,outward foreign direct investment(OFDI)plays an active role in stimulating employment,promoting innovation,alleviating overcapacity and optimizing economic structure.In recent years,China’s OFDI has achieved leapfrog development,but there are still some defects in its development process.In addition,China is currently in the stage of economic structural transformation.At the same time,the global political and economic environment is becoming increasingly complex.Changes in the internal and external environment have put forward new requirements for China’s financial supply-side structural reform,so as to create a good financial ecological environment for the comprehensive and in-depth implementation of the "the Belt and Road" initiative and the high-quality development of the economy.For a long time,China’s single financial structure dominated by state-owned banks and " ownership discrimination " still restrict corporate financing and foreign investment.As an important feature of the optimization of the financial system structure,the improvement of the level of financial ecological diversity,whether it is the increase of the types of financial institutions or the improvement of the size distribution uniformity of financial institutions,will be conducive to improving this situation.Therefore,it is of great theoretical and practical significance to deeply explore how to guide the financial ecological diversity to promote the development of OFDI more comprehensively and effectively.Based on this,this paper firstly sorts out relevant literatures at home and abroad,and analyzes the mechanism of financial ecological diversity affecting OFDI.Then,this paper uses the provincial panel data from 2005 to 2018 as the sample to construct and measure the indicators of financial ecological diversity,OFDI scale and its dual margin by using the Hefindahl-Hirschman index and ALP model.Finally,this paper uses empirical methods such as two-way fixed-effect panel data model,chained intermediary effect model,and semi-parametric panel data model to examine the effect and path of financial ecological diversity on OFDI scale and its dual margin.In addition,this paper analyzes the regional heterogeneity and non-linear characteristics between them.The paper draws the following conclusions:The empirical research results of financial ecological diversity and OFDI scale show that:(1)The effect of financial ecological diversity on OFDI scale is significantly positive.The results of sub-sample regression show that,compared with the eastern regions and provinces along the "One Road",the promotion effect is stronger in the central and western regions and provinces along the "One Belt".(2)From the perspective of intermediary channels,financial ecological diversity not only has a direct impact on the scale of OFDI,but also indirectly influences the scale of OFDI through the external financing efficiency of enterprise.(3)From the perspective of the action trajectory and characteristics,during the sample survey period,there is a “ N ” type non-linear relationship between financial ecological diversity and OFDI scale.This shows that during the development of financial ecological diversity,it has both positive and negative effects on OFDI.The relationship between financial ecological diversity and OFDI scale depends on the game of two functions.The results of sub-sample regression show that there is significant regional heterogeneity in the effect of financial ecological diversity on the scale of OFDI.The shape of the " N " curve between the financial ecological diversity and OFDI scale in the eastern region is obvious,and the inflection point appears far before the entire China and the central and western regions.In the central and western regions,there is a " W " curve between them.Although the overall level of financial ecological diversity in the central and western regions is relatively high,its development stage is far behind the eastern region and entire China.It needs a higher level of financial ecological diversity to make up for the lack of external financing levels of enterprises to promote the development of OFDI.Besides,empirical studies based on samples from the areas along the “ One Belt ” and “ One Road ” have reached similar conclusions.Further empirical research on the structural decomposition of OFDI growth shows that:(1)There are significant differences in the impact of financial ecological diversity on OFDI ’s intensive margin and expansion margin,which has a significant positive correlation with the OFDI expansion margin,and a negative correlation with the OFDI intensive margin.Considering that China’ s OFDI mainly grows along the margin of expansion,exploring the impact of financial ecological diversity on the OFDI expansion margin has more practical significance in diversifying the risk of foreign direct investment and promoting the steady development of OFDI.(2)From the perspective of intermediary channels,the financial ecological diversity is mainly realized by improving the financing efficiency to promote the growth of OFDI expansion margin.(3)From the perspective of action trajectory and characteristics,in the development process of financial ecological diversity,the impact of financial ecological diversity on OFDI expansion margin presents an irregular inverted " U " shape.Based on the above research,this paper puts forward some useful policy suggestions,such as deepening financial supply-side structural reforms,improving OFDI’ s financing guarantee system,strengthening financial supervision,adapting to local conditions to promote the development of OFDI,and guiding OFDI to diversify development.This not only helps to clarify the focus and direction of government policies,but also has important practical significance for comprehensively deepening financial structural reforms and the “the Belt and Road” initiative and promoting the development of OFDI.The paper has 31 pictures,24 tables,and 145 references.