Research On The Impact Of China's OFDI On Domestic Regional Economy

Outward Foreign direct investment is an important way to actively participate in the international division of labor.It can not only make the investment home country make full use of foreign capital,market,technology and labor,but also transfer excess domestic production capacity,and influence the economic development of the home country through the reverse spillover effect.However,due to the uneven development of China's regions,the impact of the reverse spillover effect of OFDI on different regions will also be different.Therefore,it is of great theoretical and practical significance to explore the inherent law of China's OFDI on the reverse spillover effects of various regions in China.This paper uses the combination of theoretical analysis and empirical analysis to analyze and verify the reverse spillover effect and regional heterogeneity of China's OFDI on employment,wages and economic growth in China,and finds that OFDI has significantly promoted.In China as a whole,as well as in the three major regions,the employment volume has increased,wages have risen,and economic aggregates have increased,with the largest effect on the eastern region.On this basis,in order to further examine the factors affecting the absorption capacity of the region and the threshold characteristics,this paper uses the threshold regression panel model to start from the six aspects of human capital,R&D intensity,technology gap,financial development,openness and marketization index.The thresholds of the absorption capacity in the region of reverse spillover effects were further tested and measured.The results showed that the regions exceeding the threshold were mainly concentrated in the eastern coastal areas of China and the economically developed regions.The reverse spillover effect of OFDI in China has significant regional heterogeneity and "threshold features".Based on the above conclusions,this paper proposes the following policy recommendations: play a government-oriented role,formulate regionally differentiated investment strategies,and improve the OFDI system.This paper provides theoretical guidance and policy recommendations for the layout and division of OFDI activities in various regions of China,and provides reference and reference for OFDI in various provinces and cities in China.