The Influence of Financial Development on China’s “One Belt and One Road” Investment

With the continuous advancement of China’s“One Belt and One Road”strategy, the fixed-effects regression and systematic GMM regression method were adopted to make an empirical study of the multinational panel data of 32 countries along the“One Belt and One Road”between 2003 and 2015 so as to find the influence of the financial development upon the direct investment in China.This paper focuses on the two dimensions of financial development:financial development scale and financial development efficiency.The results show that financial development efficiency has a significant positive effect on China’s foreign direct investment, while the scale of financial development hinders China’s direct foreign investment.Under the current new financial development situation, China should avail itself of the strategic“One Belt and One Road”strategy to effectively develop China’s foreign direct investment, and China’s foreign direct investment should give adequate attention to the host country’s financial development.