Research On The Impact Of Investment Facilitation On The Level Of Foreign Investment In China

Due to the global economic weakness,the rise of investment and trade protectionism,geopolitical instability,manufacturing in developed countries and capital repatriation,foreign direct investment flows to emerging economies and developing countries have shown a significant downward trend in recent years,and the number of foreign direct investment Drastically reduced.To this end,emerging countries and developing countries are striving to formulate policies that are conducive to the introduction of foreign investment.China is no exception.Since China became the first country in the world to attract foreign capital inflows in 2014,the speed and quantity of attracting foreign investment has gradually slowed down since then.Not only that,due to the impact of a series of factors such as the rising cost of production factors such as labor,land and capital,and the entry of the economy into a new normal,China has also experienced the phenomenon of foreign direct investment outflows.In view of the slowdown in the rate and volume of foreign capital outflows and foreign capital inflows,it is necessary to examine the status quo of China and formulate targeted investment facilitation policies to increase the ability to attract foreign direct investment.To this end,based on the research results of domestic and foreign scholars on investment facilitation,combined with the reality of China,this paper has constructed a set of investment facilitation level measurement system,from infrastructure,institutional environment,market access,business environment,etc.In one aspect,it is subdivided into twelve indicators,and the factor analysis method is used to measure and evaluate the investment facilitation level of 30 provinces in China from 2010 to 2016.By combing the relevant literature affecting the introduction of foreign investment,five factors including per capita GDP,R&D investment,FDI,labor cost,and investment facilitation level are selected to construct the panel model analysis.These five factors are introduced to foreign direct investment.Impact.Through analysis,the following conclusions can be drawn: the level of investment facilitation in the eastern region of China is greater than that in the central and western regions,and the overall level of investment facilitation is gradually improving;through improving infrastructure construction,rule of law,intellectual property protection,business environment,investment barriers,etc.The factors are conducive to improving the level of investment facilitation in each province;five factors,such as per capita GDP,R&D investment,FDI,labor cost,and investment facilitation level,have significant influence on the introduction of foreign capital,through the improvement of human capital and the development of R&D.Measures such as investing and increasing the degree of openness of attracting investment will help increase the attractiveness of China’s introduction of foreign investment.