The Impact Of Fdi On The Quality Of Economic Development

Since the reform and opening up,China has adhered to the basic state policy of opening up.FDI has flowed into China.China has gradually become the country attracting the most foreign investment in the world,creating a "miracle" of developing countries attracting and utilizing foreign capital.The participation of FDI has brought advanced technology,foreign talents and management experience to China,and China’s GDP has also achieved rapid growth attracting worldwide attention.However,while FDI promotes the rapid growth of GDP,it also brings problems such as lack of independent innovation,waste of resources and environmental pollution.Socialism with Chinese characteristics has entered a new era,and China’s economy is in the stage of shifting from high-speed growth to high-quality development.Therefore,it is very important to use FDI to promote the improvement of the quality of economic development,promote the further rise of the six provinces in central China,and then improve and enhance the quality of China’s economic development.This paper first study on the quality of economic development,FDI influence on the quality of economic development and the central six provinces FDI research related literature,on this basis,with innovation,coordination,green,open,sharing development concept to guide the quality of economic development,and analyze the mechanism of FDI on the quality of economic development,then put forward the research hypothesis of this paper.Second,by analyzing the current situation of FDI of the Six Central Provinces,it is found that there are some problems such as unbalanced regional utilization and over-concentrated sources of FDI.With the new development concept as the theoretical guidance selection index construction economic development quality comprehensive evaluation system,the more comprehensive measure of the Six Central Provinces economic development quality,through the analysis of economic development quality index found that since 2006,the Six Central Provinces economic development quality has been a certain degree of promotion,but there are obvious regional differences and dimension differences.The empirical analysis of the panel data of the Six Central Provinces from 2006 to2020 found that:(1)FDI can promote the economic development quality of the Six Central Provinces,for different levels of quality of economic development,the promotion effect of FDI is different.(2)By using the heterogeneity analysis,it is found that the influence of FDI on the quality of economic development in different economic development environments was varied..Meanwhile,there is regional heterogeneity in the influence of FDI on the quality of economic development,In Shanxi,Jiangxi,and Hubei,FDI can promote the quality of economic development,But in Hunan,Anhui and Henan,the impact of FDI on the quality of economic development is not significant.(3)By analyzing the impact of FDI on different dimensions of the quality of economic development,it is found that some differences in the influence of FDI on the five dimensions of the quality of economic development.The impact of FDI on the four dimensions of innovation development,coordinated development,open development and shared development is positive,FDI has a negative impact on green development.Finally,the main points of this paper are summarized,and the policy suggestions are given based on the development status of the Six Central Provinces.