Analysis Of The Threshold Effect Of China's Actual Use Of Foreign Capital On OFDI

Today,with the ever-changing world economy,economic globalization has become a general trend.International investment is playing an increasingly important role in the international arena.Commodities,resources,capital,information,and technology from around the world are reasonable and optimized globally.Since China's accession to the WTO in 2002,China's foreign direct investment capacity has been significantly improved,whether it is the actual use of foreign investment or direct foreign investment.Investment has a major impact on China's social,economic and even political areas.Therefore,it is of great significance to explore the interaction mechanism between two-way investment.This article is written based on the theory of investment development stage.Therefore,it first introduces the theory of investment development stage and other important FDI theories.Then based on the status quo of China's two-way investment,the horizontal comparison of China's two-way investment status,analysis of China's two-way investment growth trend and regional distribution situation,through comparison found that:China's two-way investment in the top ten provinces and cities roughly coincide.In the empirical analysis section,based on detailed data materials,using the version 14.0 of STATA software,Hansen's threshold panel model was used to empirically test the panel data of 30 major provinces and cities in China from 2003 to 2016.Select regional export volume,government support,and R&D expenditure as control variables.Through empirical tests,the extent of the impact of actual use of foreign investment on foreign direct investment is divided into three intervals.In different intervals,the actual use of foreign capital has different effects on FDI,of which,in the second interval,the actual use Foreign investment will have the greatest positive impact on foreign direct investment,that is to say,in this interval,the actual use of foreign capital will maximize the level of foreign direct investment.Finally,according to the empirical results,it is suggested that the positive spillover effect of using foreign capital,the reverse spillover effect of technology,and the corresponding policies provided by the government should be used to raise the level of China' s foreign direct investment and promote the sustainable development of China' s economy.This article's overall creation stems from concerns about the impact of two-way investment on China's social,political,and economic aspects.It seeks to find structural mutations that actually use FDI in foreign direct investment,and finds that actual use of foreign capital has the most significant impact on FDI.The interval finally combines the empirical results with the actual situation and provides practical policy recommendations.