The Impact Of Financial Structure On Outward Foreign Direct Investment In Eastern Region

Since the reform and opening up,as the economic environment has improved and the level of global integration has deepened,China's economic development has achieved tremendous success.The performance of the economic development in the eastern region has become more prominent.The reason for this is to remove the good infrastructure,encouragement policies of the government,and high human capital in the eastern region.We will find that the direct foreign investment in the eastern region is also a good economic basis.One of the important factors.The party's report on the 19 th CCP also mentioned deepening the reform of the investment and financing system and giving play to the key role of investment in optimizing the supply structure.However,the development and development of foreign direct investment activities depend on a certain external environment,especially the demand for funds and the financial structure has special requirements.Finance is the core of economic development.OFDI is an inevitable choice for international expansion after the company grows and grows.Therefore,the optimization of financial structure will inevitably affect the direct foreign investment of the company.With the reform of the financial system,companies will be better able to solve the problem of insufficient funds,so that enterprises can obtain capital advantages,and then encourage companies to go out.However,the current literature on the impact of financial structure on OFDI is rarely involved.Therefore,in the context of deepening the reform of the financial system,this paper takes the eastern part of the economy more developed as an example to study the impact of financial structure on OFDI,which has important practical significance.This paper is based on Monopoly Advantage Theory,Motivation Factors Combination Theory and Financial Structure Theory,and analyzes the process of the financial structure's effect on OFDI through the scale and activity of financial structure.We use the panel data of 11 provinces in the eastern part of China for 2006-2015 years to analyze the financial structure and OFDI.In the current situation analysis,there are regional differences in structure-viability,but the difference is not significant.There are also regional differences in structure-scale,but the differences are more obvious.The OFDI in the eastern region is relatively stable,and maintained a growth trend in ten years.The difference between OFDI traffic in different regions is not,and the growth rate is also different.The empirical analysis will separately analyze the effects of financial structure-activity and financial structure-scale on the stock and flow of OFDI in the eastern region.The empirical results show that the explanatory variables have the same effect on the stock and flow of OFDI in the eastern region and promotion of financial structure activity has a significant effect on the promotion of OFDI,which indicates that the optimization of the financial structure can not only expand the credit market and the size of the stock market,and the efficiency and quality of the financial structure is more effective.It can promote OFDI of enterprises and promote enterprises to participate in international market competition.This article also included the interactions between the level of economic development and the financial structure,and found that the level of economic development has a positive effect on the adjustment of OFDI in the eastern region to the financial structure.In addition,the level of economic development is positively related to the stock and flow of foreign direct investment,and the impact is significant.There is a significant positive correlation between financial development and FDI and foreign direct investment stocks,and there is no significant relationship with FDI flows.Finally,this paper puts forward three policy suggestions,first,stimulate market dynamism,optimize financial structure,and promote direct foreign investment;second,promote financial reforms,give play to the scale advantages of the market,and support enterprises in direct foreign investment activities;third,increase economic development level and give full play to scale advantages.And stimulate market vitality and promote the development of foreign direct investment.