A Study Of The Effects Of Region Digital Economy Development On Attracting Foreign Investment

In the context of the international economic downturn and the outbreak of the COVID-19 epidemic,the digital economy still shows strong development potential,promoting the continuous development of the economy.Therefore,the development level of the digital economy has become important influencing factors for attracting foreign investment in various regions.As one of the three national development plans,the construction of the Yangtze River Economic Belt,the "the Belt and Road" and the "Beijing Tianjin Hebei" integration are not only the key to achieving high-quality economic development,but also important measures to promote social civilization and progress and maintain the ecological environment.Therefore,it has become a hot topic of regional economics.This article mainly studies the relationship between the development level of digital economy in various cities in the Yangtze River Economic Belt region and the attraction of foreign investment,which has important guiding significance for Chinese enterprises to attract investment.This article first reviews relevant theories and literature,which can theoretically analyze the impact and mechanism of digital economy development on attracting foreign investment.Secondly,the development status and existing problems of various cities in the Yangtze River Economic Belt region in the digital economy and their ability to attract foreign investment were elaborated.Then,an evaluation system for the comprehensive development index of the digital economy was constructed,and the principal component analysis method was used to measure and analyze the comprehensive development level of the digital economy in 109 prefecture level cities in the Yangtze River Economic Belt region from 2011 to 2019.Finally,a benchmark regression model is established for empirical test,and robustness test,endogenous test and heterogeneity test are conducted.The research results found that the level of digital economy development in cities inhibits the ability of cities in the Yangtze River Economic Belt to attract foreign investment.Moreover,the level of digital economy development has heterogeneity in the ability of different regions of the Yangtze River Economic Belt to attract foreign investment.The development level of the digital economy has a restraining effect on the ability of the upper and middle and lower reaches of the Yangtze River Economic Belt to attract foreign investment.However,the conclusion that the development level of the digital economy has a negative impact on foreign direct investment is significant in the middle and lower reaches of the Yangtze River,but not significant in the upper reaches of the Yangtze River.Finally,based on empirical research,suggestions are proposed to accelerate the construction of digital economy infrastructure,bridge the digital divide,tilt policies,and optimize the business environment to enhance the city’s ability to attract foreign investment.