Analysis Of The Influence Of Intellectual Capital On China's FDI

In recent years,China's economic development has become increasingly inseparable from foreign investment,especially with the growth of foreign direct investment.FDI plays a role that cannot be ignored in all walks of life and in all regions.This is reflected in all aspects of the national economy.Supply,demand and external environment are the main factors that FDI considers when entering China.The past research results are mostly biased towards the influence factors of traditional FDI,but with the emergence of new trade theory and the circulation of global capital,the traditional FDI theory has not been enough to explain the new changes since the late twentieth century.In addition,the continued growth of the contemporary Chinese economy is inseparable from the development of intellectual capital.Intellectual capital plays an increasingly important role in attracting FDI.In areas with rich intellectual capital,better integration of FDI and labor is more attractive to FDI.It is important to explore the motivations of FDI in multinational corporations.In the current economic environment,it is particularly important to explore the different levels of intellectual capital that are attractive to FDI.The new location factors are playing an indispensable role,such as intellectual capital,which requires research in relevant fields to guide the region.In this context,this paper studies the impact of intellectual capital on China's FDI,uses fixedeffect regression,and adds dummy variables to more intuitively see the regional differences in the impact of intellectual capital on FDI.In addition,considering the existence of endogenous problems,that is,FDI will also affect intellectual capital through technology spillovers.The paper introduces instrumental variables: regional Qing Dynasty scholars data,as a tool variable of local knowledge accumulation level.The study concluded that intellectual capital has a positive effect on foreign direct investment,and regional infrastructure construction has a positive impact on foreign direct investment.Labor costs will have a reverse impact on foreign direct investment,and sewage treatment costs have foreign direct investment.The main conclusion of this paper is that intellectual capital has a positive impact on foreign direct investment.Finally,it summarizes and gives policy recommendations: The government should strengthen the construction of high-tech infrastructure,optimize regional resource allocation,formulate relevant laws and regulations,and strengthen environmental governance.