The Influence Of The Establishment Of Development Zones On Foreign Capital Inflow

With the continuous advancement of economic globalization,the practice of development zones has achieved certain results in various countries,and its policy objectives of attracting foreign investment have also been achieved to varying degrees.At the same time,the unprecedented changes and the epidemic are intertwined,posing challenges for the further development of an open economy,and the flow of international capital has also experienced repeated episodes.Under the new situation,giving play to the important role of development zones in attracting foreign investment is of great significance to regional economic development in China.Identifying the differences in characteristics and the mechanism of action can provide reference for realizing the policy goals of stabilizing foreign investment,promoting the construction of a high-level opening pattern and the upgrading of development zones.Based on this,this paper applies the time span from 1990 to 2019 to investigate the effect of investment attraction in the construction of development zones in China from various angles.Firstly,it sorts out and analyzes the literature citations and the actual situation of development zones and foreign investment absorption of China,and obtains a basic understanding of the relationship between the two.Secondly,based on the analysis of theoretical basis,it discusses the transmission mechanism of development zone construction on foreign capital inflow.Thirdly,the average effect,heterogeneity analysis and transmission mechanism of the impact of development zone construction on foreign capital inflow are obtained by using the staggered DID.Conclusions include: 1.The construction of China’s development zones has effectively promoted the inflow of foreign capital.Among them,the policy effect in the eastern region is the most significant,and the relevant practices in the central,western and northeastern regions need to be further developed;2.Whether it is according to administrative level or zone number to divide cities,the investment effect of development zones is significantly positive,but cities with higher administrative level or without development zones can benefit more;3.From labor spillover,government self-sufficiency,and industrial upgrading,the construction of development zones can influence and promote the inflow of foreign capital.Finally,this paper puts forward relevant policy suggestions.