Test Of The Development Stage Of China’s Foreign Direct Investment And Analysis Of Its Influencing Factors

With the in-depth implementation of China’s strategy of attracting foreign investment and opening up to the outside world,China’s ability to attract foreign investment will be further enhanced.By 2020,China’s actually utilized foreign capital was US $149.3 billion and the flow of foreign direct investment was US $153.7 billion.The flow scale of the two is basically the same.China has entered a new era of coordinated development of two-way direct investment.However,COVID-19’s continued influence and Western counter globalization trend are deepening,and trade investment protectionism is on the rise.The domestic economic recovery is still unstable and unbalanced,the traditional advantages of attracting foreign investment are weakening,and the risk of foreign investment is also gradually expanding.In this context,how to improve the development stage of China’s foreign direct investment has become an important part of China’s construction of a high-level opening-up system.Firstly,based on the IDP theory proposed by Dunning,this thesis establishes a model to verify the applicability of IDP in China.The scatter chart of China’s per capita net foreign investment and per capita GDP data from 1990 to 2020 intuitively shows the dynamic evolution process of China’s 30-year investment development stage,showing a U-shaped development trend.The empirical test results of time series data and inter provincial panel data show that China’s two-way direct investment development conforms to IDP theory,is in the early stage of the fourth stage of IDP,and the fifth power model has more explanatory power than the quadratic model and polynomial model.Secondly,this thesis selects 9 representative countries to make an international comparison of IDP with China.The regression results of nine countries show that the investment development stage of most developing countries is ahead of their economic level,and China is in the leading IDP stage among developing countries.However,compared with the developed countries that are stable in the fifth stage,the coordination ability of two-way investment still has a large gap.The explanation of IDP theory to developed countries is reduced,which is related to the research time period.With the improvement of the stage of foreign direct investment,in addition to economic factors,foreign net investment is also affected by other factors.Thirdly,this thesis studies the factors affecting China’s net foreign investment,selects 13 variables from seven levels: macro-economy,government policies,knowledge and technology level,infrastructure,labor quality,dependence on foreign trade and industrial structure,selects public factors through factor analysis,and expands the basic model of IDP theory.Through total sample and sub sample regression analysis,the results show that the technical level,economic structure The level of foreign trade will promote China’s net foreign investment.Developed and underdeveloped regions are more affected by the economic structure,and more developed regions are more affected by the level of foreign trade.Finally,according to the research conclusion,this thesis gives corresponding policy suggestions for the promotion of the development stage of China’s foreign direct investment.First,cultivate local multinational companies and improve the quality and efficiency of double circulation;Second,pay attention to talent training and scientific and technological innovation to improve the ownership advantage of enterprises;Third,promote the reform of market-oriented allocation of factors to provide power for the optimization and upgrading of industrial structure;Fourth,strengthen the functions of the open platform and realize high-level opening to the outside world.