Using the time series data from 1982 to 2005, we conduct whether the financial repression is the motivation for outward foreign direct investment of China or not. The empirical result shows that the Chinese financial policies promote OFDI of China significantly and population dependency ratio does not. Although China accumulates amount of foreign reserve and promotes large OFDI under the financial policy, there exists the imbalance of the economic structure. And based on the results, this paper gives some suggestions.
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