Threshold effect between OFDI and innovation ability:An empirical analysis based on financial development

Abstract

Abstract: A nonlinear panel threshold regression model is constructed based on Chinese panel dated between 2003 and 2011 from 30 provinces to analysis the impact of OFDI on regional innovation capability and its financial development "threshold effect". The results show that there is significant financial development threshold effect on the innovation ability in China from OFDI: the OFDI has no significant effect on the innovation ability, when financial development is lower than the threshold value; the OFDI has significant positive effect on the innovation ability, when financial development is higher than the threshold value. The results also show that Beijing, Shanghai and Zhejiang are in high financial development area while most of the remaining area are in lower level of financial development.

Key words: financial development, OFDI, innovation ability, threshold effect

CLC Number:

F832.6

Liu Huanpeng, Yan Taihua. Threshold effect between OFDI and innovation ability:An empirical analysis based on financial development[J]. Science Research Management, 2015, 36(1): 1-7.

References

[1] Koske I.International R&D spillovers: The role of financial markets[J].Applied Economics Letters,2009,16(15):1533-1536. [2] 周春应.对外直接投资逆向技术溢出效应吸收能力研究[J].山西财经大学学报,2009(8):47-53.Zhou Chouying.Research on the absorptive capability of reverse technology spillovers from OFDI[J].Journal of ShanXi Finance and Economics University,2009(8):47-53. [3] Kogut B.,Chang S.Technological capabilities and japanese foreign direct investment in the united states[J].The Review of Economics and Statistics,1991(73):401-413. [4] Neven D.,Siotis G.Technology sourcing and FDI in the EC: An empirical evaluation international [J].Journal of Industrial Organization,1996,14(5):543-560. [5] Serapio M.G.,Dalton D.H.Globalization of industrial R&D: An examination of foreign direct investments in R&D in the United States [J].Research Policy,1999(28):303-316 [6] Pearce R.D.Decentralized R&D and strategic competitiveness: Globalised approaches to generation and use of technology in multinational enterprises [J].Research Policy,1999,28:157-78. [7] Siotis G.Foreign direct investment strategies and firms' capabilities [J].Journal of Economics & Management Strategy,1999,8(2):251-270. [8] Head K.,Ries J.,Swenson D.Attracting foreign manufacturing: Investment promotion and agglomeration [J].Regional Science and Urban Economics,1999,29(2):197-218. [9] Braconier H.,Ekholm K.,Knarvik K.In search of FDI-transmitted R&D spillovers: A study based on Swedish data [J].Weltwirtschafliches Archiv,2001,137(4):644-665. [10] Branstetter L.Is foreign investment a channel of knowledge spillovers? Evidence from Japan's FDI in the united states[J].NBER Working Paper,2000. [11] Pradhan P.,Singh N.Outward FDI and knowledge flows:A study of the indian automotive sector [J].International Journal of Institutions and Economies,2009,1(1):155-186. [12] Driffield N.,Love J.H.Foreign direct investment,technology sourcing and reverse spillovers[J].The Manchester School,2003,71(6):659-672. [13] Cantwell J.,Janne O.Technological globalization and innovation centers:The role of corporate technological leadership and location hierarchy[J].Research Policy,1999(28):119-144. [14] Bitzer J.,Kerekes M.does foreign direct investment transfer technology across borders? New evidence[J].Economics Letters,2008,100(3):355-358. [15] 祁春凌,黄晓玲,樊瑛.技术寻求、对华技术出口限制与我国的对外直接投资动机[J].国际贸易问题,2013(4):115-122.Qi Chunling,Huang Xiaoling,Fan Ying.Technology-seeking,technology export restriction and the motives behind China's OFDI [J].Journal of International Trade,2013(4):115-122. [16] 吴先明.中国企业对发达国家的逆向投资:创造性资产的分析视角[J].经济理论与经济管理,2007(9):52-57.Wu Xianming.Converse investment of Chinese enterprises in developed counteries:Analytical view of created assets [J].Economic Theory and Business Management,2007(9):52-57. [17] 陈菲琼,钟芳芳,陈珧.中国对外直接投资与技术创新研究[J].浙江大学学报(人文社会科学版),2013(4):170-181.Chen Feiqiong,Zhong Fangfang,ChenYao.Chinese OFDI and technology innovation[J].Journal of Zhejiang University(Humanities and Social Sciences),2013(4):170-181. [18] 沙文兵.对外直接投资、逆向技术溢出与国内创新能力[J].世界经济研究,2012(3):69-74.Sha Wenbing.China's outward FDI in africa and resource-seeking strategy [J].World Economy Study,2012(3):69-74. [19] 李梅.国际R&D溢出与中国技术进步—基于FDI和OFDI传导机制的实证研究[J].科研管理,2012(4):86-92.Li Mei. International R&D spillovers and technological progress in China based on the transmission mechanisms of FDI and OFDI [J].Science Research Management,2012(4):86-92. [20] 蔡冬青,周经a.东道国人力资本、创新能力与我国OFDI的反向技术溢出[J].世界经济研究,2012(4):76-80.Cai Dongqing Zhou Jing.Host country's human capital,R&D investment and China's OFDI's reverse technology spillover[J].World Economy Study,2012(4):76-80. [21] 蔡冬青,周经b.对外直接投资对出口技术水平的提升研究[J].世界经济研究,2012(12):52-57.Cai Dongqing Zhou Jing.Promotion of outward direct investment on the technological level of exports:A theory and empirical study based on China's inter-provincial data [J].World Economy Study,2012(4):76-80. [22] 陈岩.中国对外投资逆向技术溢出效应实证研究:基于吸收能力的分析视角[J].中国软科学,2011(10):61-72.Chen Yan.An empirical study on China's OFDI reverse technology spillover:An absorptive capacity perspective[J].China Soft Science,2011(10):61-72. [23] Hansen B.E.Threshold effects in non-dynamic panels:Estimation,testing,and inference [J].Journal of Econometrics,1999(93):345-368. [24] 李泽广,王群勇,巴劲松,李津.分省投资与信贷关系中的"门槛效应":审视投资增长的新视角[J].金融研究,2010(5):84-101.Li Zeguang,Wang Qunyong,Ba Jinsong,Li Jin.The"threshold effect" between investment in different provinces and credit relationship:A new perspective of examine investment growth[J].Journal of Financial Research,2010(5):84-101. [25] Driscoll J.C.,Kraay A.C.Consistent covariance matrix estimation with spatially dependent panel data [J].Review of Economics and Statistics,1998(80):549-560.