A Study on The Impact of The Level of Digital Economy Development on The Utilization Efficiency Of FDI

Yilin Tian; Youwei Jiang

doi:10.54097/grth2063

Authors

Yilin Tian
Youwei Jiang

DOI:

https://doi.org/10.54097/grth2063

Keywords:

Digital economy development level; Foreign direct investment utilization efficiency; Fixed effect model.

Abstract

The rapid advancement of the digital economy has garnered significant interest in the efficiency of foreign direct investment (FDI) utilization. This study transcends conventional research approaches and carefully examines the relationship between the two through the lens of efficiency. This study analyzes panel data from 30 provincial-level administrative regions in China between 2012 and 2022, constructing an empirical model. It concludes that the advancement of the digital economy significantly improves the efficiency of foreign direct investment utilization; specifically, a higher level of digital economy development correlates with increased FDI efficiency. These findings remain robust across various testing methodologies. The study's conclusion offers a scientific foundation for the government to develop a policy for the synergistic advancement of foreign investment, thereby enhancing the theory of international investment and supplying robust theoretical support and empirical evidence for the optimization and enhancement of China's foreign investment utilization strategy in the digital economy era.

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