The Influence Of Bank Competition On Enterprises' Foreign Direct Investment

In recent years,with the rapid development of China's finance,the market structure of banking industry has gradually improved,and the competition among banks has become increasingly fierce.Under the background of one belt,one road,the real economy of our country is developing rapidly,and the direct investment of Chinese enterprises is developing rapidly.The development and perfection of the banking industry also provides financial support for enterprises and creates conditions for the development of enterprises' foreign direct investment.What is the relationship between bank competition and foreign direct investment,and what is the impact mechanism?This paper takes the above issues as the starting point to study.On the theoretical research,on the basis of relevant theories and literature review,this paper analyzes the relationship between bank competition and enterprises' foreign direct investment and its influence mechanism.In the empirical research,the data sources are the data disclosed by CSMAR database,Wind database and China Banking Regulatory Commission from 2000 to 2018.Through the construction of the model,probit regression and tobit regression,as well as robustness test,impact mechanism analysis,heterogeneity analysis and other regression analysis,the following conclusions are drawn:(1)bank competition promotes enterprises to make OFDI decisions,increases the number of overseas companies and enhances the speed of OFDI.(2)Through the analysis of the impact mechanism,it is found that bank competition can further promote the OFDI of enterprises by alleviating the financing constraints faced by enterprises and promoting the technological innovation of enterprises.(3)For state-owned and non-state-owned enterprises,capital intensive enterprises and labor-intensive enterprises,low market concentration industry and high market concentration industry enterprises,large and medium-sized enterprises,coastal and inland enterprises,Eastern and central and western enterprises,the promotion effect of bank competition on enterprises' outward direct investment activities is different.Compared with state-owned enterprises,bank competition has a stronger role in promoting foreign direct investment of non-state-owned enterprises;compared with capital intensive enterprises,bank competition has a stronger role in promoting foreign direct investment of labor-intensive enterprises;compared with high market concentration industry enterprises,bank competition has a stronger role in promoting foreign direct investment of enterprises in low market concentration industry;compared with large enterprises,bank competition has a stronger role in promoting foreign direct investment of non-state-owned enterprises;compared with capital intensive enterprises,bank competition has a stronger role in promoting foreign direct investment of labor-intensive enterprises;compared with high market Compared with the enterprises in inland areas,bank competition plays a stronger role in promoting the outward direct investment of enterprises in coastal areas;compared with the enterprises in the central and western regions,bank competition plays a stronger role in promoting foreign direct investment of enterprises in the eastern region.Finally,based on the conclusion of the above research and analysis,this paper puts forward targeted countermeasures and suggestions from the perspective of banking market and enterprises themselves.