The Impact of Foreign Direct Investment (FDI) on Urban Economic Resilience: An Empirical Study Based on the Yangtze River Delta Urban Agglomerations

Abstract

Urban economic resilience can reflect whether cities can sustain high-quality development. Therefore, based on the panel data of 26 cities in the Yangtze River Delta Urban Agglomerations from 2010-2019, this paper measures the city economic resilience index using the entropy method and explores the impact of foreign direct investment (FDI) on the economic resilience of cities in the Yangtze River Delta using the Tobit model. The results show that (1) Shanghai, Hangzhou, Nanjing and Suzhou have higher urban economic resilience than other cities and are more likely to achieve high-quality economic development (2) FDI has a significant negative impact on urban economic resilience (3) the level of urban innovation development can promote the development of urban economic resilience; urban freight capacity, urban greening level and advanced industrial structure hinder the development of urban economic resilience, but the effects of urban greening level and advanced industrial structure are not significant. Finally, this study makes several suggestions on how to improve the economic resilience of the Yangtze River Delta Urban Agglomerations.