Abstract
Based on the panel data of 244 prefecture-level cities from 2004 to 2018, this paper empirically analyzes the impact of dishonesty level on foreign direct investment, and tests the difference of the impact of dishonesty level on foreign direct investment under different levels of financial development. The empirical results show that: First, the improvement of the level of dishonesty has a significant inhibitory effect on foreign direct investment. Second, when the level of financial development is low, the level of dishonesty has no significant impact on foreign direct investment, and when the level of financial development is high, the level of dishonesty has a significant inhibitory effect on foreign direct investment. Third, from the analysis of regional heterogeneity, the level of dishonesty has a significant inhibitory effect on foreign direct investment, but it is more significant in non-eastern regions than in eastern regions.
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