Research on the Relationship between Bidirectional FDI and Regional Innovation Capability ---Based on the Threshold Effect of Regional Financial Development

Based on China's inter-provincial panel data from 2008 to 2018, this paper introduces regional financial development as a threshold variable, constructs a nonlinear threshold regression model, and discusses the nonlinear relationship between bidirectional FDI and regional innovation capacity. The study finds that FDI and OFDI have obvious threshold effect on the innovation ability of various regions in China, and the threshold variable is regional financial development: only when the level of financial development exceeds the threshold, the effect of FDI and OFDI on the improvement of regional innovation ability is more significant. In the future, China should make every effort to improve the level of financial development, and more vigorously promote the development of regional innovation capacity based on the policy of " bringing in " and "going out".