Research On The Influence Of Regional Financial Development On The Reverse Technology Spillovers Of OFDI

Since the beginning of the 21st century,the relationship between countries has become closer and closer and the intensity of China's OFDI has also increased.With the rapid development of OFDI,many successful companies have transferred to foreign capital-intensive areas to learn and absorb local technology,which has greatly improved the competition of the parent company.Therefore,learning the advanced technology through OFDI has become a good way for many countries to upgrade their TFP.However,the reverse spillover effect does not appear easily and consistently,but depends on home country's level of absorption.Among them,financial development in the home country is a very important factor.Employing provincial data of China over the period of 2003 to 2017,this study first examines empirically the existence of reverse spillover effects.Then this study decomposes TFP into technical advancement and technical efficiency based on the DEM-based Malmquist productivity index model,so as to further investigate the intermediate channel of OFDI to improve TFP.Then this study examines the impact of financial development on adjusting the reverse technology spillover effect by joining the interaction between regional financial development and OFDI.Finally this paper uses the threshold model to more fully explore the effect of financial development on OFDI's reverse technology spillover.The results show that OFDI can significantly increase the level of TFP,and the spillover effect gradually weakens from east to west,indicating that the reverse spillover effect does exist.The improvement of TFP through OFDI for east is mainly from the increase of technical efficiency,while the central region is all derived from the increase of technical efficiency.The improvement of TFP through OFDI for west is from the increase of both technical efficiency and technical advancement.There is a single threshold effect on financial scale and financial structure.Below the threshold,financial development will significantly inhibit the absorption of foreign technology.When the threshold is depreciated,it will significantly promote the absorption of the technical level and only a very small number of provinces cross the threshold.There is no threshold effect on financial efficiency.