The Influence of Digital Economy on the Inflow of Foreign Direct Investment

Abstract

Based on the perspective of human capital and environmental regulation, the comprehensive evaluation index and environmental regulation intensity of digital economy are obtained by entropy method and comprehensive index method. Based on the panel data of prefecture-level cities from 2011 to 2018, the influence of China digital economy on foreign direct investment inflow is analyzed. The results show that the digital economy positively affects the inflow of human capital and foreign direct investment; The total effect of digital economy on FDI inflow can be divided into direct effect and intermediary effect. The direct effect of digital economy on FDI inflow is significantly positive, and human capital is the intermediary variable between digital economy and FDI inflow, and its intermediary effect is significantly negative. Environmental regulation negatively affects the inflow of foreign direct investment, and its regulatory role significantly inhibits the positive impact of digital economy on the inflow of foreign direct investment. Therefore, on the one hand, it is necessary to accelerate the high-quality development of the digital economy and actively and effectively introduce foreign capital; On the other hand, the government should implement environmental regulation policies according to local conditions, give full play to the "compensation effect" of environmental regulation, and actively introduce foreign capital inflows.