Sustainable Local Foreign Direct Investment Performance in China: Based on the Imbalance of Coastal Regional Economy

Abstract

Zhao, X.-N., Qiu, Y. and Zhang X., 2019. Sustainable local foreign direct investment performance in China: Based on the imbalance of coastal regional economy. In: Gong, D.; Zhu, H., and Liu, R. (eds.), Selected Topics in Coastal Research: Engineering, Industry, Economy, and Sustainable Development. Journal of Coastal Research, Special Issue No. 94, pp. 859–862. Coconut Creek (Florida), ISSN 0749-0208.For advantage of the environment, coastal region in China is more attractive to foreign direct investment, such as Yangtze River delta and Pearl River delta. To analyze the differences in foreign direct investment importation performance among different provinces in China from a sustainability perspective, this paper constructed a foreign direct investment importation performance model based on the intertemporal effect of dynamic factors. Furthermore, applying the dynamic Malmquist model and panel data, this paper evaluated the total factor productivity of the foreign direct investment importation model by considering four factors as energy, openness, human capital, and physical capital. To obtain a comprehensive perspective, this paper also identified the bottlenecks of sustainability for FDI importation performance, based on an analysis of factor contributions. The results reveal that dynamic technical changes are critical in promoting foreign direct investment importation performance. Though, the advantange of coastal region is obvious. They are also enslaved to lower dynamic technical changes. Thus, the development of soft power is the greatest bottleneck for most Chinese provinces.