Study On The Impact Of OFDI On Technological Innovation In OECD Countries From The Perspective Of Financial Development Differences

With the continuous development of economic globalization,international investment has gradually become one of the leading factors of global economic development and technological progress.China’s OFDI has been developing rapidly in recent years.Even though the total global OFDI has been declining since 2016 under the impact of COVID-19,China still maintains an upward trend.Since 2000,China’s strategy has shifted from a single "bring in" to "bring in" and "go global".Meanwhile,the concept of "high-quality development" has been put forward since2017,which makes the transformation of the quality and structure of OFDI increasingly important.Foreign direct investment in host countries can bring reverse technology spillover through information,technology and human resources flow,so as to improve China’s technological innovation level.At the same time,the host country investment environment different reverse spillover will make foreign direct investment,financial development is one of important influencing factors,how to reasonable for foreign direct investment location choice,thus improving the quality of foreign direct investment,further enhance the level of technology innovation in China’s positive influence is a problem need to focus on.This paper combines foreign direct investment theory,financial development theory and technology innovation theory.The comprehensive index of financial development level is constructed from four angles: financial scale,financial structure,financial efficiency and financial stability.It also analyzes the financial development level of various countries from 2003 to 2020,and preliminarily understands the financial development status of OECD countries.At the same time,it analyzes China’s foreign direct investment from 2003 to 2020,and concludes that The scale of China’s foreign direct investment has been increasing,but the growth rate has slowed down.Investment areas continue to diversify,investment in emerging areas increased significantly;The number of countries covered by investment is increasing,and the investment industry in each region is more concentrated.Based on the panel data of 33 host countries from 2003 to 2020 and the CH-LP model,this thesis examines whether China’s OFDI to OECD countries has an impact on the level of technological innovation,and further compares the differences between developed and developing countries in OECD countries.Hansen threshold model is further used to test the moderating effect of financial development differences on the impact of OFDI on technological innovation.This paper examines the threshold effect of financial scale,financial structure,financial efficiency and financial stability on technological innovation and progress brought by China’s OFDI.Combined with the results,countermeasures and suggestions are put forward on how to choose the location of OFDI and how to improve the quality of OFDI.