Research on Promoting Effect of Coordinated Development of Two-Way FDI on Integration of Two Industries

Abstract

This paper takes 30 provinces and cities in China as the research object, andanalyzes the influence and mechanism of two-way FDI coordinated development on the integration of the two industries based on two-way fixed effects. The study found that: The coordinated development of two-way FDI in provinces and cities has significantly promoted the convergence of two industries in our country, and the promotion is mainly realized by improving the level of technological innovation and optimizing the structure of human capital. Further analysis shows that the coordinated development of two-way FDI plays a more significant role in promoting the integration of the two industries and capital-intensive service and manufacturing industries in the eastern and central regions. Therefore, it is recommended that all regions should adhere to the two-way open strategy, enhance the level of technological innovation and increasing talent introduction plan, further optimize the structure of regional human capital, establishing reasonable industrial policy, promote the depth of the two fusion.