| The outbreak of the new crown epidemic in 2020 had a huge impact on the economies of countries around the world,hindering international investment and greatly reducing the amount of investment.According to the 2020 United Nations monitoring report,global FDI flows fell sharply,down about 42% year-on-year,the largest decline since the ’08 financial crisis.These data show that the outbreak of the new crown epidemic has had a huge negative impact on international investment,greatly reducing international investment,but in this context,China’s FDI inflows have not decreased,but have bucked the current.In 2020,China’s FDI inflows increased by 4%,and the investment reached US$163 billion,and China surpassed the United States,the European Union and other regions in attracting foreign investment,and the total amount of foreign direct investment ranked first in the world.While China’s FDI inflows are growing against the trend,China’s digital economy development momentum is also very rapid.According to the data of the white paper of China’s Academy of Information and Communications Technology,the growth rate of China’s digital economy in 2020 was9.7%,ranking first in the world.During the epidemic,under the background of serious lack of momentum in global economic growth,China’s economic level can maintain stable growth,which is precisely due to the good development of China’s digital economy.The epidemic has blocked exchanges between enterprises,society and countries and hindered the development of the national economy,but the emergence of the digital economy has effectively alleviated this problem.During the epidemic,online office,online trading,online education,etc.generated by relying on the development of the digital economy have stabilized China’s economic development and prevented economic development from stagnating.At present,the digital economy has become an important driving force for China’s economic growth and plays an indispensable role in economic development.A review of relevant literature shows that there is indeed an intrinsic relationship between the digital economy and FDI.However,there is a lack of research on the influence mechanism and path conduction between the two.Based on 30 provinces in China(excluding Hong Kong,Macao,Taiwan and Tibet Autonomous Region),this paper constructs a two-way panel fixed effect model to study the relationship between digital economy and FDI.Referring to the literature of Li Hao and Lu Yuxiu,this paper constructs the impact mechanisms of transaction cost reduction,consumer market expansion,and manufacturing level improvement,and conducts empirical analysis to explore the impact of digital economy on FDI.In addition,the threshold model is introduced,and the level of science and technology and economic development are analyzed as threshold variables to explore whether there is a threshold effect on the impact of the digital economy on FDI,that is,whether the digital economy has a nonlinear impact on FDI.There may also be a two-way causal relationship between the digital economy and FDI,and this paper further uses the instrumental variable method to deal with this endogenous problem.In 2020,China’s digital economy will develop well,and FDI will not decline but increase,so is there an intrinsic relationship between the two? Will the growth of China’s FDI inflows in 2020 be affected by the development of China’s digital economy?The article will answer these questions with further research.Reviewing the relevant literature,it can be found that there is indeed an intrinsic relationship between the digital economy and FDI,but there is a lack of research on the influence mechanism and path transmission between the two.Based on 30 provinces in China(excluding Hong Kong,Macao,Taiwan and Tibet Autonomous Region),this paper uses panel data to construct a two-way fixed-effect model to study the relationship between digital economy and FDI.Referring to the literature of Li Hao and Lu Yuxiu,this paper constructs the impact mechanisms of transaction cost reduction,consumer market expansion,and manufacturing level improvement,and conducts empirical analysis to explore the impact of digital economy on FDI.In addition,according to Metcalfe’s law,the development of the digital economy may be nonlinear,so we have to consider whether the impact of the digital economy on other factors will be nonlinear.This paper introduces threshold variables into the basic model,analyzes the level of science and technology and economic development as threshold variables,and explores whether there is a threshold effect on FDI in the digital economy,that is,whether the digital economy has a nonlinear impact on FDI.There may also be a two-way causal relationship between the digital economy and FDI,and this paper further uses the instrumental variable method to deal with this endogenous problem.In the regression results,the basic regression shows that the development of the digital economy will indeed promote the entry of FDI.Mechanism tests show that the digital economy can attract FDI by reducing transaction costs,expanding consumer markets,and upgrading manufacturing.The results of the robustness test and instrumental variable method show that the regression results of the impact of the digital economy on FDI are credible and robust.The threshold model regression results show that the economic development level and science and technology level are the threshold variables between the digital economy and FDI.When the economic development level is below the threshold,the development of the digital economy hinders FDI inflow,and when it is above the threshold,it will promote FDI inflow;When the level of science and technology is lower than the threshold value,the development of digital economy has no significant effect on FDI,and when it is higher than the threshold value,it will significantly promote FDI inflow.Through the results of the above empirical analysis,this paper can put forward reasonable suggestions on how to better promote the entry of FDI in China’s digital economy development. |
PDF Full Text Request