Research On The Impact Of Foreign Direct Investment On The Quality Of Economic Development In Yangtze River Delta Region

In the course of China’s reform and opening up,foreign direct investment plays an important role in promoting China’s economic growth and technological progress.At the 2019 China International Trade&Services Fair,President Xi Jinping emphasized that China would expand foreign capital market access and create a first-class business environment in a wider range of fields.With the continuous construction and formation of the new pattern of China’s comprehensive opening up,foreign direct investment is bound to play a more important role on the stage of China’s economic development.The Yangtze River Delta region is one of the important intersection places in "one belt,one road" and the Yangtze River economic belt.Foreign capital economy plays an important role in promoting the integrated development of the Yangtze River Delta,enhancing the innovation and competitiveness of the Yangtze River Delta,improving the degree of economic agglomeration,regional connectivity,leading the high-quality development of the national economy,and is of great significance in building a modern economic system.Based on the above background,this thesis analyzes the scale and structure of foreign direct investment in the Yangtze River Delta,combs the closeness between foreign direct investment and high-quality economic development,and concludes that foreign direct investment has a positive impact on high-quality economic development.Combined with the actual characteristics of the Yangtze River Delta,this thesis deeply summarizes and summarizes the mechanism of the impact of foreign direct investment on the high-quality economic development in the Yangtze River Delta.This thesis puts forward the research hypothesis:first,foreign direct investment in the Yangtze River Delta will promote the quality of economic development;Second,foreign direct investment in the Yangtze River Delta will promote the output value of the tertiary industry,optimize the economic structure and improve the quality of economic development.Third,the improvement of fixed asset investment will improve the quality of economic development in the Yangtze River Delta.In terms of research methods,this thesis further combs the impact of foreign direct investment on the quality of regional economic development,and analyzes how foreign economy can more effectively promote the high-quality development of local economy.This thesis constructs a comprehensive index of economic development quality from five dimensions:economic aggregate,educational development,urban environment,scientific and technological Development and medical security.Specifically,this thesis takes the comprehensive index of economic development quality as the explained variable,and takes the actual amount of foreign investment,the total industrial output value of foreign direct investment as the core variable,and takes the output value of tertiary industry,the number of labor force,the total investment in fixed assets,government fiscal expenditure and the year-end balance of urban savings as the explanatory variables.They construct a panel regression model.The applicability of the regression model is determined through heterogeneity test and robustness test,and the influence results and direction of various factors on the explained variables are determined.The empirical research results verify the conclusion that foreign direct investment in the Yangtze River Delta has a positive impact on the high-quality economic development.The empirical results also fully verify the research hypothesis:the increase of foreign direct investment will improve the quality of economic development in the Yangtze River Delta;the improvement of the output value of the tertiary industry will improve the quality of economic development in the Yangtze River Delta;and the increase of total investment in fixed assets will improve the quality of economic development in the Yangtze River Delta.Compared with the existing literature,based on the previous research results,this thesis focuses on the impact of foreign direct investment on the quality of local economic development in the Yangtze River Delta from 2003 to 2017.There are two innovations-in this thesis:the first is to construct a high-quality economic development index by using the entropy weight method;this thesis constructs a comprehensive index of economic development quality from five dimensions:economic aggregate,educational development,urban environment,scientific and technological Development and medical security.Second,through the analysis on panel data regression.Finally,it concludes that China should further improve the quantity and optimize the quality and structure of foreign direct investment.Compared with the literature,the data range is more specific.The variables selected by the economic development index are innovative compared with the literature,and the evaluation of the quality of economic development is more scientific and reasonable.At the same time,the structure and efficiency of foreign direct investment are in the empirical regression.