Author(s): Shouwu Jing, Yong Xia, Biao Peng, Juan Xu, School of Economics and Business, Xinjiang Agriculture University, School of Economics and Management, Jinzhong University
Pages: 106-118
Year: 2015 Issue:  5
Journal: Journal of Shanghai LiXin University of Commerce
Keyword:  financial repression; FDI; provincial panel data;
Abstract: In order to study the influence of financial repression on China’s sustained FDI inflows,the paper runs regression on the panel data from 31 provinces in China from2002 to 2012,by using individual fixed effects models. The results show that the financial repression coefficient is positive and the financial repression promotes the sustained inflows of FDI and has an inverse U relationship with FDI. Financial repression squeezes the financing space of small and medium-sized enterprise,forces them to take part in international raising funds activities,and thus promotes the persistent FDI inflowing. In addition,the results on the controlled variables show that the industrial structure,urbanization,government intervention,infrastructures and open level positively lead to the inflows of FDI.However,the increasing labor capital is negatively related to the inflows of FDI.