Research On The Impact Of Chinese Bank Internationalization On The Potential Of China's OFDI

The internationalization of Chinese banks is directly related to the scale and efficiency of Chinese outward foreign direct investment.As far as the external environment is concerned,Chinese companies' offshore financing is relatively difficult and frequent geopolitical risks,mergers and acquisitions' fiscal and tax risks make the burden of companies' internationalization costs higher and finally result in loss of investment efficiency.As a bridge for offering overseas financial services,Chinese banks provide financial support for Chinese companies' offshore investment through integrated operations both at home and abroad,joint financing,and taxation advisement in host country.Is the improvement of cross-border financial support services beneficial to China's outward foreign direct investment? Based on this,this paper analyzes the scale and potential of China's outward foreign direct investment affected by the Chinese banks' internationalization through the combination of theory and empirical methods.Theoretical research shows that bank internationalization mainly affects OFDI through direct channels such as financing constraints and risk aversion,as well as indirect channels such as technological innovation and home country financial development.On the empirical level,the full sample regression results of the extended gravitation model show that the internationalization behavior of Chinese banks and the improvement of the degree of internationalization of banks are all conducive to expanding the scale of China's OFDI.At the same time,the sample regression results based on country categories show that the marginal contribution of Chinese bank' internationalization to China's OFDI growth in developed countries is higher than that of emerging markets and developing economies.This paper interprets the heterogeneity results as follows: Bank internationalization relies on the advantages of the host country's financial market to ease the cost pressure of Chinese enterprises' cross-border investment and improve financing efficiency;the higher the transparency of the financial system of the host country,the better the financial market information disclosure mechanism,then the financial advisory services provided by overseas banks are naturally relatively efficient and accurate.In addition,the article examines the efficiency and potential of China's OFDI according to the stochastic frontier gravity model.The regression results show that the internationalization behavior of Chinese banks and the improvement of the degree of internationalization of banks can significantly improve the efficiency of China's OFDI and fully exploit the potential of OFDI.Based on this,this paper proposes countermeasures for the internationalization of Chinese banks to help China's outward foreign direct investment.