The Impact Of China’s Digital Economy On FDI Utilization Efficiency

Since reform and opening up,China has attracted a large number of foreign investment and is gradually becoming the world’s largest trading country and the second largest destination for foreign investment.China’s foreign investment development strategy has also begun to transition from "quantitative" to "qualitative",focusing on how to efficiently utilize foreign investment.At the same time,the development of information technology has given birth to a brand new economic form,digital economy,data as a factor of production,and promoted high-quality economic development and the optimization and upgrading of industrial structure.The digitalization process is advancing on a global scale,bringing new opportunities to optimize the structure and improve efficiency of foreign investment in China.The development of digital economy will also help China make full use of both domestic and foreign markets and build a domestic and international circular economy.Therefore,an in-depth study of the internal mechanism and practical role of digital economy affecting the utilization efficiency of foreign capital has important theoretical and practical significance for grasping the reform opportunities brought by the development of digital economy and further improving the utilization efficiency of foreign capital.Based on the above background,this paper explores whether the development of digital economy can have a significant positive impact on the improvement of FDI utilization efficiency.Firstly,relevant domestic and foreign research literature is reviewed and summarized,and the impact mechanism of digital economy on FDI utilization efficiency is analyzed with the help of basic theories such as transaction cost theory.Then the principal component analysis method is used to calculate the digital economy development level of each province and autonomous region,and the calculation results are analyzed.Then the status quo of foreign direct investment is explained,and the FDI utilization efficiency of each provincial administrative region is calculated by data envelopment analysis(DEA).Finally,panel data from 2011 to2020 are used to build an empirical model to study the impact of digital economy on FDI utilization efficiency at the national and regional levels.The results show that:(1)there are significant differences in the development level of digital economy and FDI utilization efficiency among different regions.(2)Digital economy has an obvious promoting effect on the utilization efficiency of FDI,that is,the higher the development level of digital economy is,the higher the utilization efficiency of FDI is.After the robustness test,the conclusion remains valid.(3)The impact of digital economy development on FDI utilization efficiency is heterogeneous.Compared with the eastern region,the impact of digital economy on FDI utilization efficiency is more obvious in the central and western regions.Based on the above research conclusions,this paper puts forward the following policy recommendations: accelerate the construction of digital infrastructure and improve the development level of digital economy;Adjust foreign investment strategy,perfect foreign investment supervision system;Implement targeted digital economy development strategies to ease regional development imbalances;...