The Study of FDI,Financial Development and Local Capital Allocation Efficiency
利用中国1999-2006年省级工业数据，通过系统GMM方法研究金融发展和外商直接投资及其交互作用对地方资本配置效率的影响，发现两者单独促进效率但交互作用相反。
The paper mainly studies whether financial development and foreign direct investment as well as their joint effect improve local capital allocation efficiency with the perspective of real economy.With China's province -level industrial data from 1999 to 2006 as a sample,the paper uses a system GMM technology to explore the empirical relationship between financial development and foreign direct investment as well as their joint effect and local capital allocation efficiency through Wurgler(2000)model and self-constructed financial development indicators.The result shows that financial development and foreign direct investment are related with the local capital allocation efficiency positively,but their joint effect goes against the improvement of local capital allocation efficiency.The policy implication of the paper is to further deepen domestic financial system reform and adjusts foreign investment strategy appropriately.