Financial Development, FDI and Economic Growth - - A Research Based on the Mediation Effect Model

Abstract

According to the mechanism of financial development, FDI and economic growth, this paper uses the individual fixed effects model and the mediation effect model of 31 provinces and cities in China from 2000 to 2019 to conduct empirical tests. The research results show that from a national perspective, the improvement of China's financial development level can significantly promote economic development. Secondly, from the perspective of regional samples, the financial development of the eastern provinces has a more significant impact on the economy, while the financial development of the central and western provinces has a limited impact on the economic development. Thirdly, from the perspective of FDI intermediary, financial development can significantly promote the improvement of economic level through FDI.