Using the statistical data of 30 provinces, cities and autonomous regions in China from 2011 to 2020, this paper analyzes the impact of digital economy development on foreign direct investment. The results show that: first, the development of digital economy has a significant role in promoting the inflow of foreign direct investment, and the results are still stable after the use of instrumental variable method to deal with the potential endogenous problems; Second, the impact of digital economy development on foreign direct investment has significant regional heterogeneity, which shows that the impact of foreign direct investment in eastern China is higher than that in central and western China. Third, the development of the digital economy promotes foreign direct investment by reducing transaction costs. The conclusion of this paper will bring the corresponding enlightenment for the sustainable development of foreign direct investment in China.

Bing Enguang. Research on the Impact of Digital Economy on Foreign Direct Investment in China. Academic Journal of Business & Management (2023) Vol. 5, Issue 27: 148-154. https://doi.org/10.25236/AJBM.2023.052724.

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