Research On The Impact Of Digital Economy On The Coordinated Development Level Of China's Two-way FD

As a new economic form,the digital economy has attracted increasing attention,and its development is bound to have a significant impact on the formation of investment patterns.Foreign direct investment and outward direct investment are two important ways for China to participate in the process of economic globalization.In the era of turbulent global economic environment and rapid development of the digital economy,it is particularly important to unleash the energy of the digital economy and make it an important driving force for promoting the coordinated development of China’s two-way direct investment(FDI).Therefore,this article focuses on the impact of the digital economy on the coordinated development level of two-way FDI in China.Using provincial data from China from 2005 to 2020 and using fixed effects models and spatial autoregressive models,this study empirically examines the impact of the digital economy on the coordinated development level of two-way FDI.The panel vector autoregressive model was used to discover the interactive effect between commercial direct investment and outward direct investment.The coupled system model was used to measure the coordinated development level of provincial-level two-way direct investment,and it was found that the development of two-way FDI is imbalanced in both time and space.Based on the two aspects of digital industrialization and industrial digitization,25 sub indicators were selected and the principal component analysis method was used to calculate the development level of the digital economy.It was found that there is an imbalance in the development level of the digital economy in various regions,showing a higher level of digital economy development in the eastern coastal areas and a lower level in the western inland areas.Through empirical research,it has been found that during the sample period,the digital economy can significantly affect the coordinated development level of two-way FDI,and there is heterogeneity in regions and policies.Compared with the central and western regions and regions along the "the Belt and Road",the digital economy plays a greater role in improving the coordinated development of two-way FDI in the eastern region and regions not along the "the Belt and Road".The benchmark regression results are still reliable after robustness tests such as instrumental variable regression,replacement of explained variables,dynamic panel estimation and change of instrumental variables.Further research has found that the digital economy indirectly enhances the coordinated development level of two-way FDI through technological innovation,industrial structure upgrading,and institutional quality.Moreover,there is a spatial spillover effect of the impact of the digital economy on the coordinated development level of bidirectional FDI.The development of the digital economy not only affects the coordinated development level of bidirectional FDI in the local area,but also has an impact on the coordinated development level of bidirectional FDI in neighboring areas.We should leverage the power of the digital economy,adhere to the equal development of "bringing in" and "going out",and promote the coordinated development of two-way FDI.This is a new advantage for attracting high-quality foreign investment and promoting effective foreign investment.