Research On The Impact Of FDI On The Development Of IOE Of Shanxi Province

The experience of more than 40 years of reform and opening up has proved that the more open up,the more development.As a resource-based economic province in the inland area,although its comprehensive strength is rising with the pace of China’s new stage of development,Shanxi Province still relatively backward compared with some provinces in the coastal areas and even in the central and western regions.To a large extent,the reason is that the level of open economic development is not high,and the resource-based economy has not become a good support for promoting the development of the inland open economy in Shanxi Province.To transform high-quality development,it is urgent for Shanxi Province to cultivate its own development momentum and actively seek external opening up.The report of the 20 th National Congress of the Communist Party of China clearly pointed out that attracting FDI is an important part of China’s construction of a new open economic system,and the key to the open economic development of inland provinces is also to expand the intensity of attracting FDI.Therefore,it is of great theoretical and practical significance to study the new development period to promote the development of the IOE of Shanxi Province by expanding the use of FDI.On the basis of combing the existing relevant literature,this paper focuses on the development of IOE in Shanxi Province,analyzes the current situation of FDI in Shanxi Province from five aspects: actual utilization of foreign capital scale,capital source,investment mode,regional distribution and industrial distribution,and points out its current problems such as small scale and unreasonable structure.At the same time,combined with the connotation of IOE,this paper constructs an index system based on the framework of internal openness,external openness,open economic support,open foundation support and open benefit development,selects 25 related secondary indicators,uses the entropy method to measure them,analyzes the results,and believes that the level of IOE development in Shanxi Province is constantly improving.In addition,based on the investigation of the direct effects of FDI,this paper explores the impact mechanism of FDI on the development of the IOE of Shanxi Province from the perspectives of technology,exports,capital and business environment,and argues that FDI can indirectly promote the development of the IOE of Shanxi Province by influencing technological progress,export expansion,capital accumulation and business environment optimization.Combined with the theoretical mechanism,this paper uses the mediation effect model to test and explore the influence effect of FDI on it through technology,export,capital and business environment,and tests the robustness of the empirical results,and the results show that FDI has a significant positive effect on the inland open economy of Shanxi Province.In addition to the insignificant intermediary effect of technology,exports,capital and business environment all have different degrees of intermediary effect.Based on this,this paper argues that in order to develop the IOE of Shanxi Province,it is necessary to give full play to the direct and indirect effects of FDI,improve FDI policies,reduce restrictions on foreign investment access,and improve the level of foreign investment attraction of various platforms;Pay attention to the high combination of investment introduction and technology,give full play to the technical effect of high-end foreign investment,and promote the technological progress of Shanxi’s production industry;Long-term planning to help FDI create export opportunities;Guiding FDI to increase capital supply;Guided by institutional opening-up,it is necessary to optimize the foreign investment environment and optimize the market business environment through institutional innovation,so as to achieve the high-quality development of the IOE of Shanxi Province.