Research On The Impact Of Financial Development On The Spillover Effect Of OFDI Reverse Technology

Since the reform and opening up,China's economy has experienced a period of rapid development,and due to the emergence of economic globalization and China's vigorous launch of "going out" strategy,more enterprises in China began to make ofdi.Through ofdi,Chinese enterprises can learn from the advanced technology and management experience of the host country,and bring these technologies and experience back to China through various channels,so that these technologies and experience can not only improve the productivity of the enterprise or even the industry or the country.But in the process of transmission,the country's ability to absorb these technologies and experiences is affected by many factors.The level of financial development belongs to this influencing factor.The financial development of a region can affect the financing behavior of enterprises in the market by influencing the financing cost and convenience of the regional financial market,and then exert an impact on the adverse technological spillover effect of ofdi absorption.However,domestic scholars have not reached a definite conclusion about the relationship between the level of financial development and the reverse technology spillover effect of ofdi,so it is of practical and theoretical significance to study the relationship between the two.In this paper,the domestic and foreign theories on ofdi are firstly sorted out,and the spillover mechanism of reverse technology spillover effect of ofdi is introduced,as well as how financial development affects the spillover mechanism.Secondly,it expounds the current situation of China's foreign direct investment from the aspects of investment scale,investment location and industry distribution,and analyzes the current financial development status from two aspects of China's overall and regional differences,and calculates the total factor productivity of all provinces and cities in China over the years according to the production function method of Cobb-Douglas.Finally,the annual data of 29 provinces and cities in China from 2003 to 2016 are used to study whether there is reverse technology spillover effect in ofdi and the impact of financial development level on this effect.In the part of empirical analysis,the capital obtained through ofdi,fdi,domestic research and development and import in various provinces and cities of China in the past years is calculated and analyzed on the basis of the international R&D overflow model.Finally,the reverse technology spillover effect of ofdi in different periods is analyzed with the time interval of "One Belt And One Road initiative".The conclusion drawn from empirical analysis is that at the overall level of China,the reverse technology spillover effect of ofdi exists and is significant positive effect.Domestic enterprises can learn more advanced technologies and management experience from the host country through ofdi,and then bring these technologies and experience back to the country through various spillover channels,and then transfer this spillover to the whole industry or country,so as to improve the total factor productivity of the industry or the country.Secondly,the reverse technology spillover effect of ofdi is different in different regions of China.Due to the different levels of financial development in different regions and the different financing support brought to enterprises,the degree of technology spillover and technology transfer is different,so the reverse technology spillover effect of ofdi in different regions is also different.Finally based on the above analysis and research,in order to more fully utilize the reverse technological overflow effect of outward foreign direct investment to China's technological progress,we should from its own actual development situation put forward the corresponding Suggestions,Firstly,at the government level,the government should adopt supportive policies and to provide more resources and encourage more enterprises to go out to make foreign direct investment;At the enterprise level,enterprises should start from expanding the scale of investment in developed regions and the fields of investment,and invest more in high-tech industries.Secondly,because of the difference of financial development brought about by the financial resources,and the different financing convenience,the government should according to the regional financial development actual situation,formulate different financial reform measures.While expanding the total amount of financial resources,the operation efficiency of the financial system should be improved so as to achieve the reverse technological spillover effect of ofdi.