On The Impact Of Digital Economy On Basic Motivations Of IFDI And OFDI In China

The digital economy,as a new economy type or economic concept,has received more attention than ever before.Obviously,the development of digital economy will inevitably make a far-reaching impact on investment.Outward FDI and Inward FDI are effective ways for China to participate in international economic cooperation.In the context of complex times such as the overall shrinking of the global investment market and rapid developing of digital economy around the world,the study on the impact of digital economy on basic motivations of two-way FDI in China is instrumental in observing the shift of investment preference and trend of Chinese and foreign MNCs and taking their strategy space into account.Therefore,this paper focus on the impact of digital economy on basic motivations of IFDI and OFDI in China.On the basis of refining the theory and the characteristics of the current situation,this study uses mathematical models,measurements in related index and econometric models to analysis the digitally economic influence on basic motivations of inward FDI and Outward FDI in China.The main conclusions of this study are as follows.Firstly,on the natural-resource-seeking motivation.There are certain differences between natural-resource-seeking motivations of IFDI and OFDI,and the impact of digital economy development on them are also slightly different.In general,both of them do not conform to the traditional theory of natural-resource-seeking motivation of FDI: the natural resources have a certain "resource-curse" effect on IFDI in China,and the natural resources in the host country have no significant attraction to China’s OFDI.The digital economy aggravates the curse of resources in of IFDI in China,but do not have a significant impact on the natural-resource-seeking motivation of OFDI in China.Secondly,on the motivation for seeking labor resources(human capital).Both China’s IFDI and OFDI have obvious motives for seeking labor resources,which are consistent with the traditional theory of labor-resource-seeking motives of FDI.But there are differences between the impact of digital economy on the motivations for seeking labor resources of China’s IFDI and OFDI: the development of the digital economy in China has no significant impact on the labor-resource-seeking motivations of China’s IFDI,but the international digital economic distance among countries weakened the labor-resource-seeking motivations of Outward FDI of China.Thirdly,on the motivation for seeking market.There is almost no difference in identification of market-seeking motivations of IFDI and OFDI in China,and the impacts of digital economy on the them are also relatively similar.Both inward FDI and outward FDI of China have obvious market-seeking motives,which are in line with the traditional theory of market-seeking motives of FDI.And the digital economy weakens market-seeking motivations of Inward FDI and Outward FDI in China.Fourthly,on the motivation for seeking knowledge and technology(strategic assets).There is also almost no difference in identification of knowledge-seeking motivations of IFDI and OFDI in China,and the impacts of digital economy on the them are still similar.Both China’s IFDI and OFDI have obvious motives for seeking knowledge and technology,which are consistent with the traditional theory of knowledge-seeking motives of FDI.And the digital economy weakens the motivations for seeking knowledge and technology both of Inward FDI and Outward FDI in China.Compared with existing research,the marginal innovation of this paper is mainly reflected in the following three aspects.The first one is on the innovation of the manifestation of the motivation of FDI.In the past research,the manifestation of the motivation of FDI can be divided into two types,that is,to measure the FDI motivation by generating variable(this paper gives the name "direct method"),or use the regression coefficient in econometric equation to reflect(this paper gives the name "indirect method ").And this paper use both of them to improve the robustness and reliability of the empirical conclusions.The second is the innovation of the measuring method on the related index of digital economy and the basic motivation of FDI.This paper made certain improvements and adjustments to the existing measurement methods and indicator system that contribute to construct a more advanced and scientific evaluation system.Thirdly,the research takes account of the basic motivations of both IFDI and OFDI in China.The economic history and the past studies show that it is very shortsighted and dangerous to one-sidedly pursue attracting foreign investment or expanding the scale of outward investment.It is even more important to combine inward investment and outward investment,especially for China which has been more and more important in global value chain.Therefore,this paper focus on digitally economic influence on basic motivations of Two-way FDI.And it will help to explore the path to the coordination between inward foreign direct investment and outward foreign direct investment in China,and present new views and thoughts for the formulation of government policy on international investment.