The Impact Of Foreign Direct Investment On Residents’ Subjective Well-being Of Regional Differences And Coping Strategies

Over the past 40 years of reform and opening up,foreign direct investment(FDI),as a supplement to domestic capital,has exerted positive effects on promoting technology spillover,stimulating economic growth,increasing employment,which to some extent has improved residents’ welfare.At the same time,FDI has also brought about plenty of problems to economic and social development,such as,resource depletion,ecological destruction and unbalanced regional development.This has damaged residents’ well-being.Based on the assumption of "homogeneity" of FDI,scholars have extensively discussed the macro-impact of FDI quantity on the host country,but paid little attention to "heterogeneity" FDI and its impact on the microwelfare level of residents.In order to better explain the relationship between FDI and Chinese residents’ subjective well-being,this thesis considers both the quantity and quality of FDI,and calculates FDI quality by using entropy method based on the subindexes of the quality.Using the mixed cross-sectional data of China Comprehensive Social Survey(CGSS)from 2010 to 2017,this thesis empirically analyzes the impact of FDI on Chinese residents’ subjective well-being and regional differences with the Ordered Probit model.The robustness of the results is tested by changing the models and variables.The empirical results of this thesis show that:(1)On the holistic level,the quantity of FDI has an insignificant impact on residents’ subjective well-being,whereas the improvement of FDI quality is helpful for the promotion of residents’ subjective wellbeing through the upgrading of industrial structure,environmental regulation and employment.As for the sub-indicators of FDI quality,the profitability,actual scale,and technology level present a significant promoting effect,while the management level and export capacity does not.(2)There are regional differences in the effects of quantity and quality of FDI on the subjective well-being of residents.In the eastern area,the quality,profitability,technical level,export capacity and actual scale of FDI all can effectively enhance residents’ subjective well-being.(3)In the central region,the profitability of FDI is conducive to improving residents’ subjective-wellbeing,whereas the indicators of FDI quantity and export capacity exert negative effects on subjective well-being.(4)In the western region,FDI export capacity can significantly promote residents’ subjective well-being.FDI profitability and management level have a restraining effect.Finally,based on the comprehensive analysis of research results,this thesis puts forward that while paying attention to the quantity and scale of foreign investment,China should optimize the industrial layout,strengthen the investment orientation and improve the quality of foreign capital utilization.Regional governments should introduce FDI with different quality characteristics based on the development reality,so as to better improve the subjective well-being of Chinese residents.This paper contains15 figures,22 tables and 120 references.