Financial Development Level's Impact On OFDI Reverse Technological Spillovers Effect

In recent years,with the strengthening of China's international competitiveness and the gradual implementation of the "going out" strategy,China's outward foreign direct investment(OFDI)has entered a stage of sustained and rapid development.In 2015,China's OFDI surpassed its FDI,which made China become the net capital exporter for the first time.OFDI will greatly promote Chinese enterprises' global access to high-quality factors of production as well as advanced knowledge and technology,thus leading to the technological progress and economic growth of China upon the reverse technology spillover effect.Observe the practice of foreign investment in China we also found that the pursuit of technology for overseas mergers and acquisitions and green space become more and more enterprises' choice.In this paper,we will build an empirical model based on the analysis of the current situation of OFDI and the theoretical mechanism of OFDI reverse technology spillover to test whether there is a significant reverse spillover effect in OFDI in our country,And how the regulatory variables of financial development affect the effect of OFDI reverse technology spillover effects.This essay compares the differences,in terms of promoting China's technological progress,between the outward foreign direct investment channel and the traditional channels of importing and absorbing foreign direct investment through analysis of the panel data of China's 29 provinces from 2003 to 2014.The results show that outward foreign direct investment has become more than the import and absorption of foreign capital to promote China's technological progress as the most important way.What's more,it examines the roles that financial development depth and financial development efficiency play in OFDI reverse technology spillover effect,analyses their threshold effect in the reverse technology spillover and reckons whether provinces of China have crossed such threshold.Therefore it offers some strategies on how to promote China's OFDI reverse technology spillover by boosting financial development depth and financial development efficiency.