The Influence Of The Exchange Of Local Government Officials On Regional FDI Inflows

Since the reform opening to the world,China has continuously deepened the development of an open economy.The government report clearly stated that "the breadth and depth of opening up to the outside world should be expanded and the level of an open economy should be improved." FDI integrating funds,technology,marketing and management is one of the main ways for countries to increase capital accumulation and promote the development of an open economy.After decades of development,China's actual utilization of foreign capital has consistently ranked second in the world,and it is the world's second largest inflow of foreign capital.China's overseas investment has achieved remarkable and huge success,but is the success behind the efforts of local government officials at all levels? How did their efforts promote the success of China's foreign investment? These questions constitute the main line of this article.At present,the academic community's exploration of these issues is mainly carried out under the framework of Chinese-style decentralization,"promotion championships" and other frameworks.The main logic is that under the special system of Chinese-style decentralization,local officials have a strong promotion preference In the face of limited financial resources,it has a strong enthusiasm for construction.It can be seen that under the Chinese decentralization system,the role of local officials cannot be ignored.This paper continues the previous research and attempts to investigate the influence oflocal government officials on the origin of regional FDI inflows and the changes in official communication effects in the time dimension.To this end,the paper constructed the economic openness characteristics of the 261 prefecture-level city mayors and city party committee sources and their corresponding economic and social variables from 2005 to 2016.The statistical software was used for regression analysis And the robustness test shows that the exchange of mayors and city party secretaries from higher economic openness can not only promote regional FDI inflows,but also correspond to the effect of official exchanges from lower economic openness and background-independent officials.Compared with this type of official communication effect,the promotion effect of regional FDI inflows is more significant,and this promotion effect becomes larger as the gap between the economic openness of the source and transfer-in areas becomes larger.At the same time,these officials mainly promote the increase of regional FDI by increasing infrastructure investment,and the intermediary effect is not obvious through the development of secondary industries and employment promotion,and the mechanism of action is contrary to expectations;from a time perspective The effect of the exchange of officials from the higher degree of economic openness on the FDI inflow during the term of office has an inverted “U” relationship,which is consistent with the conclusions drawn by previous scholars.Finally,this paper combined with the empirical results from two aspects to make recommendations on further promoting the inflow of FDI in China.