An Empirical Research of the Relation between the FDI Spillovers and the Regional Financial Development Structure of China

Hui Wang¹

¹China University of Geosciences, Beijing, China

Abstract

Based on the provincial panel data of China from 2000 to 2014, the paper applies double-threshold regression model to examine the relation between the threshold effect of the financial development structure and the foreign direct investment (FDI) spillovers on economic growth in different regions of China. It is revealed that there are two thresholds existing in the FDI spillovers process in different regions of China. The total effect of the FDI spillovers on economic growth has a same trend with the financial development structure changes. Based on the empirical results, some policies on how to develop regional finance and how to introduce FDI to promote regional economic growth of China are recommended.

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Cite this Article as Follows

Hui Wang. An Empirical Research of the Relation between the FDI Spillovers and the Regional Financial Development Structure of China. International Conference on Business, Finance and Economics (2017): 08. Print.