Does "Guangdong-Hong Kong-Macao Greater Bay Area" Promote OFDI Reverse Innovation Spillovers in Provinces Along the Line?

Abstract

Based on the panel data of 30 provinces and cities with provincial status across the country from 2011 to 2016, this paper explores the impact of Initiative of Guangdong-Hong Kong-Macao Greater Bay Area on the development of OFDI reverse innovation spillovers in the provinces along the line. This paper empirically tests the impact of the Guangdong-Hong Kong-Macao Greater Bay Initiative on the development level of OFDI reverse innovation spillovers in the provinces along the line by using the difference-in-differences method. The study found that the Guangdong-Hong Kong-Macao Greater Bay Initiative has effectively improved the development level of OFDI reverse innovation spillovers in the provinces along the line in China. From the dynamic test results, it can be seen that the Guangdong-Hong Kong-Macao Greater Bay Initiative has had an impact on the development of OFDI reverse innovation spillovers in the provinces along the line since it was proposed, and the policy effect has gradually strengthened. The robustness of the regression results is further verified by eliminating the 11 provinces of the Yangtze River Economic Belt to eliminate the impact of exogenous events, which shows that the promotion of the policy of the Guangdong-Hong Kong-Macao Greater Bay Region on OFDI in the provinces along the line is not affected by the pre-policy factors, nor by other events. The conclusion of this paper has important implications for the optimization of regional industrial policies and the development of Guangdong, Hong Kong and Macao in the background of dual circulation.