A Study On The Influence Of Business Environment Difference Between East And West China On FDI

General Secretary Xi Jinping delivered an important speech at the closing ceremony of the 20 th National Congress,stressing that to establish a high-level socialist market economy,we must further optimize the business environment and promote China’s high-level opening up with a first-class market-oriented,law-based and international business environment.Therefore,in order to realize socialist modernization,improving the business environment is the focus of China in the future,and the business environment to attract foreign investment is also an important aspect of strengthening opening-up.At present,China’s development is generally weakening from east to west,showing a trend of regional imbalance.In order to better explore the impact of the differences in business environment in different regions in China on foreign direct investment,this paper focuses on the two regions with obvious differences between the eastern coast and the western inland.This paper selects the data from2002-2020 according to the bureau of Statistics.The business environment evaluation system was constructed and established,and the business environment was divided into three indicators: cost,income and scale based on the perspective of enterprise investment.Then,the entropy method was used to calculate the business environment scores of each region and city,and the results were used to analyze the impact of the business environment on foreign investment in the eastern and western regions using the panel tool.The results show that the improvement of business environment in eastern and western regions to attract foreign investment,including the eastern foreign investment of the sensitivity to the business environment is greater than the western region,from the cost of the eastern business environment is greater than the scale factor,the size of the western region is greater than the cost factor.Through the specific analysis of the empirical results,on the one hand,the eastern and western regions should continue to increase the opening to the outside world to attract high-quality foreign investment,and the government should continue to strengthen the system,market and legal guarantee.On the other hand,the eastern region should pay more attention to the control of cost factors and promote industrial upgrading.The western region should pay more attention to the scale factor to make up for its own shortcomings.