The Impact Of Guangdong-Hong Kong-Macao Greater Bay Area Integration Policy On Regional Foreign Direct Investment Based On Did Method

In 2017,the plan for the Guangdong-Hong Kong-Macao Greater Bay Area was included in the government Work report.With the strong support of the government and relevant departments,the strategic status of the Guangdong-Hong Kong-Macao Greater Bay Area is increasingly enhanced.As the largest coastal city cluster in China and an important hub of the Belt and Road Initiative,the Guangdong-Hong Kong-Macao Greater Bay Area has become the most dynamic part of the international economy.It is of great significance for China to further deepen its opening up.It is an important platform for China to improve the utilization of foreign investment,innovate ways of utilizing foreign investment and break through the bottleneck of attracting foreign investment.In view of the actual situation in China,although China has made certain achievements during the period of reform and opening up policy,problems such as insufficient growth of foreign investment and unbalanced development in some regions cannot be avoided.The construction of Guangdong-Hong Kong-Macao Greater Bay Area provides a new solution to the above problems.This paper firstly composes and summarizes the literature on the GuangdongHong Kong-Macao Greater Bay Area,the effect of regional construction on foreign direct investment,and the mechanism of the role of regional construction on foreign direct investment.Second,it summarizes the reform initiatives in the GuangdongHong Kong-Macao Greater Bay Area and the FDI in the region.Again,based on the panel data of nine cities in the PRD from 2010-2019,this paper conducts an empirical analysis using double difference method,which includes benchmark regression,robustness test,heterogeneity analyzer,and mechanism test,to study the effect of Guangdong-Hong Kong-Macao Greater Bay Area integration policy on regional FDI and compare the FDI in the PRD city cluster before and after the occurrence of the policy with that in the Beibu Gulf city cluster and The differences between the urban clusters on the west coast of the Taiwan Strait.The results show that the implementation of the Guangdong-Hong Kong-Macao-Great Bay Area integration policy can significantly increase the FDI in the PRD city cluster,and the finding still holds after a series of robustness tests.The mechanism of action shows that the Guangdong-Hong Kong-Macao-Great Bay Area integration policy can have a significant positive impact on attracting foreign investment in urban agglomerations through increasing population size and raising labor costs.Heterogeneity analysis shows that the effect of the policy on FDI promotion depends on the development level of different economies,and the establishment of the Guangdong-Hong Kong-Macao Greater Bay Area has the most significant effect on regional FDI promotion in the central cities.Finally,this paper analyzes and summarizes the empirical results and makes six suggestions: creating an international first-class business environment,creating a more convenient market environment,guaranteeing high-quality and efficient government services,attaching importance to the important role of talent innovation,accelerating the integrated development of city clusters,and attracting high-quality foreign investment through multiple channels in a sustainable manner.This paper provides a new research perspective,linking foreign direct investment with the integration policy of Guangdong-Hong Kong-Macao Greater Bay Area for the first time,and exploring the impact of integration policy on foreign direct investment,which is a useful supplement to the existing research on the policy effect of Guangdong-Hong Kong-Macao Greater Bay Area.In addition,the study of the influence mechanism of the integrated construction of the Guangdong-Hong Kong-Macao Greater Bay Area on foreign direct investment in the new era will not only help to find the shortcomings of the existing policies in the implementation process,provide experience for the future construction of the Bay Area,but also provide useful inspiration for the formulation and implementation of other regional development policy planning.