Abstract
At the macro-national level, foreign direct investment (FDI) can effectively promote the new urbanization in China. However, at the urban level, the interactions between FDI and the new urbanization are still not clear. To answer this question, this study constructs a new urbanization development index system based on a panel data set of 271 cities in China from 2003 to 2014. The weights of 26 secondary indicators are determined by the entropy method, and the spatial and temporal effects between FDI and the new urbanization are analyzed using the Panel Vector Autoregression model. Furthermore, direct–indirect effects of urbanization and that of FDI are respectively studied from short-term and long-term two visual angel. The results show that the FDI inflow is an exogenous motive force for the new urbanization, and the new urbanization provides strong support for attracting foreign capital. However, FDI in the neighboring areas is not conducive to local urbanization, and the urbanization of the surrounding areas will inhibit the local FDI Inflows.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
