Financial Development and China's Two-way FDI

China's Two-way FDI has developed simultaneously al a large scale in recent years, which has important impacts on China's economy and world economy. OFDI has grown quickly in a short term after China utilized 1FDI for nearly 30 years. It is significant to sum up China's experience and...

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Bibliographic Details
Published inFu dan xue bao. She hui ke xue ban no. 6; p. 135
Main Authors Suhua, Tian, Jinxing, Shi, Feifei, Dou
Format Journal Article
LanguageChinese
Published Shanghai Fudan Daxue 01.01.2018
Subjects
Economic development
Financial institutions
Influence
Loanwords
China
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Summary:China's Two-way FDI has developed simultaneously al a large scale in recent years, which has important impacts on China's economy and world economy. OFDI has grown quickly in a short term after China utilized 1FDI for nearly 30 years. It is significant to sum up China's experience and principles under China's two-way FDI development by analyzing the mechanisms of IFDI's influence on OFDI. This paper constructs some absolute and relative indicators of China's financial development. Based on bilateral FDI stock panel data between China and 188 economies from 2003 lo 2015 and by using Partial Inventory Adjustment model, we analyze the influence of financial development on China's two-way FDI development and the influence of China's inward FDI on its outward FDI. The results show that China's financial size expansion such as loan size per person have significant effects on China's two-way FDI development. Financial structure improvement such as credit-gain ability of private sector and financial efficiency such a
ISSN:0257-0289