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

Liu Huanpeng; Yan Taihua

Science Research Management ›› 2015, Vol. 36 ›› Issue (1) : 1-7.

Liu Huanpeng, Yan Taihua

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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

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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

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