TITLE:
Influence of the Level of Financial Development on OFDI in China
AUTHORS:
Peiyi Chen
KEYWORDS:
Outward Foreign Direct Investment, Financial Development
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.2,
February
23,
2018
ABSTRACT: Outward Foreign Direct Investment (OFDI) is influenced by many factors. In these
factors, the impact of the financial development of the investing country is
very important and obvious. An important support for an enterprise to make OFDI
is to get a sufficient source of funding, and the source of funding depends on
the degree of development of domestic financial market. From the early research,
we can find that OFDI in developing countries, at least to some extent, is the
result of economic structural improvements and financial innovations. Taking
China as an example, this paper studies the role of developing countries in the
level of financial development in OFDI. By using the panel data of 30 provinces
and autonomous regions in China during the five-year period from 2010 to 2014,
we want to examine the development of financial markets in various regions
impact on China’s outward foreign direct investment.