The Impact Study Of Population Aging On Foreign Direct Investment In China

As China's economy and society gradually enter the “new normal” stage,many social structural issues have become increasingly prominent.The degree of aging in China continues to deepen,and the scale of foreign direct investment has been at a growth stage,but the growth rate is gradually slowing down.From the perspective of population aging,this paper analyzes the causes of the growth and changes in foreign direct investment,and explores the effects and mechanisms of population aging on foreign direct investment in China.First of all,this paper uses the literature review method to summarize the theory and viewpoints of population aging theory and foreign investment theory at home and abroad.Then described the aging of China,Japan and Germany and the status quo of foreign direct investment.Next,according to the previous analysis,we conclude that the three paths of aging affect foreign direct investment,that is,the aging of the population will affect foreign direct investment through the impact of regional savings,labor costs and labor participation rates.The deeper reason is that the difference in the degree of aging has caused differences in the rate of return on capital between different regions.Because of the profitability of capital,capital flows from low-yield regions to high-yield regions.This is also a foreign business in different periods and regions.There will be major changes in direct investment.Second,the empirical part discusses the effects of aging on foreign direct investment under different circumstances by constructing models.Empirically,it is found that the aging has to some extent inhibited the inflow of foreign direct investment in China.To explore the mechanism of aging,we use the Mo model to decompose the impact of aging,confirming that the degree of aging affects savings,labor costs,and labor participation rates.On the mechanism of the influence of aging on foreign direct investment,the mechanism of the influence of aging on foreign direct investment is explained by constructing the interaction between aging and the three.In the robustness test section,samples were further tested in accordance with regional differences and openness differences to examine the impact of aging on foreign direct investment.Finally,on the basis of the above theoretical analysis and empirical results,several suggestions are proposed: First,directing foreign direct investment into the areas with low degree of aging.Second,delay the retirement age and increase the supply of labor.Third,the establishment of a sound foreign investment mechanism to create a suitable investment environment for foreign investment.Fourth,improve the investment structure of foreign direct investment.