The Influence of Anhui Province's Integration into the Yangtze River Delta Region on IFDI

Suxin Wang

doi:10.54097/qx968012

Authors

Suxin Wang

DOI:

https://doi.org/10.54097/qx968012

Keywords:

IFDI; Integration of the Yangtze River Delta; Difference-in-differences method; Anhui Province.

Abstract

In order to explore the driving effect of regional economic integration on IFDI, this paper takes Anhui Province's joining the Yangtze River Delta Economic Coordination Committee as a quasi-natural experiment, and uses the Staggered DID method to systematically evaluate the dynamic impact of policy implementation based on the panel data of 16 prefecture-level cities in Anhui Province from 2000 to 2021. The results show that: firstly, the inclusion of the Yangtze River Delta has significantly increased the scale of foreign direct investment in Anhui Province, and the conclusion is still valid after a series of robustness tests such as parallel trend test, placebo test and excluding other policy interference. secondly, the heterogeneity test shows that the policy effect is more obvious in cities adjacent to Jiangsu and Zhejiang regions, central cities, cities with higher economic development level, better infrastructure and higher degree of opening up. This study enriches the relevant literature on regional economic integration and IFDI, provides an empirical basis for IFDI attraction under the strategy of regional coordinated development, and also provides policy implications for the central and western regions to achieve high-quality foreign investment development by relying on regional cooperation.

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