Abstract: Using five state-level financial reform pilot areas, the impact of financial reform on TFP is empirically investigated based on the counterfactual synthetic control approach. The research results show that in the five financial reform pilot areas, the reform measures of two reformed areas in Zhejiang and Yunnan can improve the total factor productivity in the reform area, while Fujian and Shandong financial reform do not have a significant impact on TFP growth.It means that Zhejiang's reform measures of private lending effectively expand the financing channels of small and medium-sized enterprises and enhance the innovation ability of small and medium-sized enterprises. Besides,Yunnan financial reform experimental area has achieved remarkable results, and the innovation of cross-border business and other related business improves the financing dilemma of "going out". More advanced technology will be returned to the country through a reverse spillover, and the growth of total factor productivity is achieved. The above results not only improve the research on the impact of financial reform on TFP, but also provide effective data support for the current financial reform, and further provide some inspiration for the formulation and implementation of financial reform policy.

Key words: financial reform, technological innovation, synthetic control, out forward direct investment