Influence Of Foreign Direct Investment Research Articles

Decoding the Environmental Synergy in BRI Nations: Analyzing the Influence of Renewable Energy Adoption, Financial Evolution, FDI, and Capital Resilience on Sustainability

In response to escalating global concerns over environmental degradation, this study explores the intricate relationships between financial development (FD), foreign direct investment (FDI), capital adequacy, renewable energy consumption (REC) and environmental sustainability in BRI. We aim to provide nuanced insights into how these economic variables impact environmental quality, contributing to a comprehensive understanding of the complex interplay between economic development and environmental conservation. We aim to explore the associations between FD, FDI, REC, and capital adequacy, and environmental quality, emphasizing short-term and long-term dynamics. We employ the Autoregressive Distributed Lag (ARDL) model and conduct D-H causality tests to discern these variables' temporal and causal relationships. This methodology allows us to capture the complexities of the relationships and provide a robust analysis of their impacts on environmental sustainability. The findings reveal a positive long-run association between FD and environmental quality, suggesting that a well-developed financial sector may contribute positively to environmental outcomes. However, the short-run dynamics introduce complexity, indicating a potential immediate positive impact and raising questions about contextual factors influencing FD's contribution to increased carbon emissions. Shifting the focus to FDI and REC, our research uncovers a potential positive association with environmental quality in the long run. The short-run analysis introduces nuances, suggesting a potential negative impact, reflecting the mixed effects observed in previous studies, which underscores the importance of considering temporal dimensions and policy interventions to enhance the positive contributions of FDI and REC to environmental sustainability. Further, our study delves into the impact of capital adequacy on environmental sustainability, revealing a positive long-run association, which challenges negative associations, underlining the need for tailored policies to balance economic growth and environmental conservation. As a whole, our findings contribute quantitative evidence to guide policymakers in fostering incremental improvements over time, acknowledging the multifaceted nature of the relationships under consideration.

FDI impact: catalyzing digital capabilities in host nations

Purpose This study aims to investigate the impact of foreign direct investment (FDI) on national digital capability, specifically differentiating the impact between FDI greenfield and mergers and acquisitions (M&A). The research also investigates factors shaping digital capabilities, encompassing government transparency and absorptive capability, while exploring the mediating influence of absorptive capability in the FDI–digital capability relationship. Design/methodology/approach An econometric model has been developed to examine the interrelationship between national digital capability, FDI inflows, national absorptive capability and government transparency. The data set encompasses 55 countries over a period of nine years (2013–2021). National digital capability data is derived from the well-established index published by the World Competitive Centre (WCC). The sources of the explanatory variables align with standard practices, drawing from reputable institutions (UNCTAD and the World Bank, among others). Findings The findings reveal a significant positive impact of FDI, particularly in greenfield investments, on national digital capability. Government transparency and research and development (R&D) investment are crucial factors contributing to digital capabilities. Additionally, the absorptive capacity, reflected by R&D investment, also emerges as a potential moderating factor, influencing the impact of FDI inflows on digital capabilities. Practical implications The results recommend that policymakers and stakeholders should carefully consider the role of FDI, especially in greenfield investments, as a catalyst for enhancing national digital capability. The findings also underscore the significance of promoting government transparency and directing investments towards R&D to nurture digital capabilities. Moreover, understanding the mediating role of absorptive capability can inform strategies aimed at optimizing the impact of FDI on digital capabilities. Originality/value This study contributes uniquely to the existing literature by being the first to systematically explore the influence of FDI on national digital capability. Furthermore, it presents innovative empirical findings on the role of absorptive capability in enhancing the FDI impact on national digital capability, an area that remains relatively uncharted in current literature.

Understanding the Factors That Influence Foreign Direct Investment in Turkey: Exploring the Impact of Country Risks and Geopolitical Risk

The primary objective of this study is to investigate the determinants of foreign direct investment, with a specific focus on per capita GDP (GDP), alongside various risk factors including economic risk (ER), financial risk (FR), political risk (PR), and geopolitical risk (GPR), in the context of Turkey. This investigation employs an innovative wavelet methodology to analyze the relationships among these variables. The empirical analysis entails the application of wavelet coherence, as well as multiple wavelet coherence (MWC) and partial wavelet coherence (PWC) techniques, to evaluate the strength and significance of relationships between different time series while considering the influence of other related time series. Utilizing quarterly data spanning from 1988Q1 to 2020Q4, this study seeks to fill a gap in the existing literature by examining the nexus between these factors in both time and frequency domains, a novel approach in this field. The findings from the wavelet coherence analysis reveal that GDP, PR, FR, and ER positively impact FDI inflows, whereas GPR exerts a negative influence across various time and frequency intervals. Moreover, the outcomes of MWC and PWC analyses underscore the significant effects of the control variables on the relationships under investigation. Based on these findings, the study puts forth noteworthy policy implications aimed at fostering a more conducive environment for FDI in Turkey.

Identifying the Influence of Foreign Direct Investment Toward the ASEAN Economic Community 2025

ASEAN as a region has a great economic potential, which explains the large interest in terms of investment in the region. The ASEAN Economic Community (AEC) cooperation program is also a milestone in increasing foreign investment in ASEAN. This study uses a quantitative approach, with the subject of this research being 10 ASEAN countries in 2015–2021. The dependent variable used in this study is foreign direct investment, and the independent variables are government effectiveness, political stability, trade openness, and the workforce. The data in this study comes from the world bank. The analytical method applied in this study is the panel data regression analysis method. Based on the research results, it can be concluded that trade openness and labor force had a positive and significant impact on foreign direct investment in 10 ASEAN countries in 2015–2021. At the same time, government effectiveness and political stability had a positive but insignificant effect. The results of simultaneous testing show that government effectiveness, political stability, trade openness, and the workforce influenced foreign direct investment in 10 ASEAN countries in 2015–2021. The government can use this study in determining foreign investment policies, especially those related to maintaining a stable investment climate. Keywords: ASEAN, foreign direct investment, government effectiveness, labor force, political stability, trade openness

Factors Influencing Foreign Direct Investments Inflow in Africa: A Case Study of Tanzania

Africa has emerged as an attractive destination for foreign direct investment (FDI) due to its rich natural resources, growing economies, and increasing political stability. The doors of Tanzania, one of the largest countries in Africa, have been opened to international companies in search of growing markets. Nevertheless, Tanzania has seen a low level of foreign direct investment (FDI) inflows, primarily because of its stringent policies restricting the ownership of businesses by foreign nationals. The aim of this study is to identify and explain the factors that influence FDI inflows in Tanzania, which is the country that will be the focus of the study. This study will concentrate on the independent factors of political stability, availability of natural resources, size of the economy, and transport infrastructure, as well as the dependent variable of foreign direct investment (FDI). To collect the appropriate information, five survey questions were developed for each variable. A total of 125 respondents were collected using purposive sampling. The findings of this study will inform policymakers, investors, and other stakeholders in the region about the factors that influence foreign direct investment inflows into Tanzania. The study examined the impact of transport and infrastructure, political stability, the scale of the economy, and the availability of natural resources on foreign direct investment (FDI) in Tanzania.

Carbon dioxide emissions, population, foreign direct investment, and renewable energy nexus: New insights from Thailand

This study investigates the multifaceted interplay between carbon dioxide emissions, population dynamics, foreign direct investment (FDI), and renewable energy (RE) within the unique context of Thailand. Amidst rapid economic growth and urbanization, Thailand faces pressing environmental challenges, making it an ideal case study for understanding the complex relationships between these variables. As a nation experiencing rapid economic growth and urbanization, Thailand provides a compelling case study for understanding the complex relationships between these variables. The paper uses the unrestricted random panel data method. Data is gathered from the World Bank from 2000 to 2022. The research addresses several critical issues using a mixed-methods approach and drawing data from national statistical agencies and environmental databases. The paper's primary objective is to explore how population dynamics, FDI, and RE adoption influence carbon emissions in Thailand. The rigorous analysis unveils key insights: a positive correlation between population growth and carbon emissions, nuanced relationships between FDI and emissions across sectors, and the significant impact of RE adoption on emissions reduction, particularly in high-emission sectors. This work contributes to the existing literature by offering novel findings and policy recommendations tailored to Thailand's environmental challenges. By addressing identified issues, such as sector-specific emissions patterns and the influence of FDI on emissions, the study provides actionable insights for policymakers striving to balance economic growth with environmental sustainability. Significantly, this manuscript advances the field by emphasizing the need for an integrated approach to environmental policymaking and highlighting the potential of RE as a critical driver of emissions reduction. The study's originality lies in its comprehensive analysis of the intricate nexus between carbon emissions and socio-economic factors within the Thai context. In conclusion, this research underscores the importance of informed environmental policymaking and offers practical implications for fostering sustainable development in Thailand and beyond. By leveraging the innovative insights and recommendations presented in this manuscript, policymakers can navigate the complexities of environmental stewardship while driving positive change towards a greener and more sustainable future.

Assessing the Drivers of Economic Growth in Pakistan: A Time-Series Analysis of Foreign Direct Investment and Oil Price Effects

This research looks at the factors that drive Pakistan's economic growth, with a particular emphasis on the influence of foreign direct investment (FDI) and oil prices. Using data from 1998 to 2022, the study applies the Auto Regression Distributed Lag (ARDL) model to examine the link between FDI, oil prices, and economic growth. The empirical findings show that FDI has a beneficial impact on economic growth, highlighting its importance as a driver for economic development in Pakistan. In contrast, the study finds that rising oil prices harm economic growth, emphasizing the negative effects of oil price volatility. Considering these findings, the study underlines the need for policies that encourage FDI inflows and industrialization to drive economic growth. Furthermore, the study emphasizes the importance of government involvement to mitigate the negative effects of rising oil costs, since unchecked rises might stymie economic progress. Understanding the determinants of economic growth in Pakistan is critical for both policymakers and investors. FDI is critical for increasing productivity and creating jobs, yet oil price volatility can have a substantial influence on the country's macroeconomic stability and growth trajectory. Analyzing their effects gives useful insights for long-term economic growth initiatives. Overall, the study suggests a dual strategy for Pakistani policymakers: create a climate conducive to attracting FDI while taking steps to reduce the negative consequences of unpredictable oil prices. By prioritizing these policies, Pakistan may accelerate its economic growth and protect itself from foreign economic shocks.

The media in China–Africa public relations: Assessing China's attractiveness beyond economic development assistance

AbstractThis work explores China's African public relations and image‐building effort, focusing on Nigeria. Thus, the paper's purpose is twofold: first, to investigate whether China's conduct of public diplomacy through its soft power resource—development assistance—has effectively shaped positive Nigerian public perception of China, and second, to determine the media's role in advancing China's public diplomacy in Nigeria. Specifically, it explores the interaction of economic development assistance, media, and public relations. I do this by comparing China's foreign direct investment (FDI) in Nigeria (2010–2019) with the public's perception of the FDI's influence on the Nigerian economy (2016 and 2020) and the media's role in shaping public support toward the investments. Utilizing a range of datasets, I find that Chinese economic investment alone is insufficient to substantially shape positive Nigerian public perception of China. Within a framework of mediated public diplomacy, I demonstrate that the Chinese image‐building effort in Nigeria would likely enhance when the country links economic investments with public relations to make the investments more visible through effective media representation.Related ArticlesAyhan, Kadir Jun, and Nancy Snow. 2021. “Introduction to the Special Issue—Global Korea Scholarship: Empirical Evaluation of a Non‐Western Scholarship Program from a Public Diplomacy Perspective.” Politics & Policy 49(6): 1282–91. https://doi.org/10.1111/polp.12440.Hodzi, Obert, and John H. S. Åberg. 2020. “Introduction to the Special Issue: Strategic Deployment of the China Model in Africa.” Politics & Policy 48(5): 804–14. https://doi.org/10.1111/polp.12378.Huijgh, Ellen. 2017. “Indonesia's ‘Intermestic’ Public Diplomacy: Features and Future.” Politics & Policy 45(5): 762–92. https://doi.org/10.1111/polp.12221.

Impact Of Digital Economy On Carbon Emission Intensity

The rapid and widespread development of digital economy has given renewed impetus to efforts to peak and reduce carbon emissions, and has heralded significant changes in the energy sector. In this paper, panel data of 70 major countries from 2010 to 2019 are selected as samples, and an indicator system is constructed to measure the level of digital economy development in each country using the entropy weight method to study the development status of digital economy development and carbon emission intensity in each country. This research utilizes a regression model incorporating curve moderating effects to investigate how the carbon emission intensity is influenced by the digital economy, while also considering the moderating influence of foreign direct investment (FDI). The findings unequivocally confirm the presence of a noteworthy U-shaped relationship between the digital economy and carbon emissions. As the digital economy progresses, it moves from supporting to reducing carbon emissions. Improving FDI plays a critical part in regulating the digital economy's relationship to carbon intensity. The shape of the curve is flattened by the moderating effect of FDI. Based on the obtained conclusions, the paper puts forward targeted recommendations in order to curb carbon emissions and further improve the ecological environment.

Unveiling new insights into China's marine ecosystem: Exploring the fishing grounds load capacity curve

As one of the most swiftly industrializing countries in the world, China is struggling with significant challenges facing its environment, in particular in its marine ecosystems. Hence, economic activities increasingly are influencing these ecosystems, requiring their study crucial for sustainable development. Therefore, it is paramount perceiving the potential implications of economic growth and foreign direct investment (FDI) for marine health. The study aims to explore the impact of economic growth and FDI on China's marine ecosystem during 1980–2019, examining the probable intersections of economic advancement, FDI, and marine sustainability, the study used a novel nonlinear Fourier Autoregressive Distributed Lags (FARDL) approach. Notably, the paper confirms the Fishing Grounds Load Capacity Curve (FGLCC) hypothesis, demonstrating a nonlinear affiliation among income levels and maritime conditions. Moreover, the results point out that FDI initially worsens marine conditions until a certain threshold is reached, marking a pivotal change in the influence of FDI from environmental degradation to improvement. In addition, the study underscores the critical need for policies that balance economic development with Chines' marine environmental sustainability, emphasizing the importance of intended regulatory and strategic interventions. These insights are vital for enhancing marine requirements and ensuring well-being and health of future generations, providing significant implications maritime policymakers in addressing marine environmental challenges amid economic development.

Analysis of the Influence of FDI on Employment in China

Since the reform and opening up, China continuously improves the investment environment, the foreign direct investment (FDI) continues to grow, which has an impact on all aspects of our economic activity. In recent years, due to the influence of the novel coronavirus epidemic, China's employment situation has fluctuated to a certain extent. How to use foreign direct investment (FDI) to stabilize China's employment situation and increase the number of employment has profound practical significance. Based on this, this paper uses China's 2011-2020 provincial panel data to study the impact of FDI on employment in China. The empirical results show that FDI has a promoting effect on employment in China, and the robustness and endogeneity tests support this conclusion. In view of this, the government should make full and rational use of foreign direct investment, balance the distribution of foreign direct investment between regions, and guide the adjustment of the structure of investment introduction.

The role of foreign direct investment in east and Southeast Asia: Evidence before and after 2009 global financial crisis

This research investigates the influence of Foreign Direct Investment (FDI), domestic physical stock, and the human capital index on labor productivity across 17 East and Southeast Asian economies. In the period from 1980 to 2009 (pre-global financial crisis), the study reveals that, initially, FDI stock independently contributes little to productivity. It underscores the necessity of specific human capital thresholds for FDI to enhance productivity by facilitating technology diffusion from source to host economies. While most economies in our sample surpass these thresholds, Cambodia, Laos, and Myanmar do not, indicating unexploited potential for productivity enhancement via FDI. In the post-2009 era, following the financial crisis, FDI emerges as the primary driver of labor productivity in these economies, rendering the previously mentioned human capital thresholds less critical across all 17 economies. The study also observes a significant, mutually intensifying crowding-out effect between FDI stock and domestic physical capital, which notably escalated around the 2009 financial crisis. Despite this, the influence of FDI stock on labor productivity substantially surpasses that of domestic physical capital, especially after 2009. These insights underscore the critical need for policymakers to strategically balance the influx of foreign investment with domestic capital investment to optimize economic growth in the aftermath of the 2009 crisis.

Is there a Positive Influence of Foreign Direct Investment on the Economies of OECD Countries? Empirical Evidence on Countries within the European Area

In the last years, most of the empirical results presented in the international literature are highlighting a positive impact of foreign direct investment on economic growth. This econometric study is taking into account evidence from the Organisation for Economic Co-operation and Development countries within the European area, the main focus being the economic crisis and the pandemic crisis during the most recent years. The research methodology is based on the Panel Least Squares regression, VAR model and Granger causality test, which proved that the foreign direct investment has a positive impact on economic growth, but not so strong, and the causal relationship is unidirectional from foreign direct investment to economic growth. The results of the study are aligned with the literature review showing a positive influence of foreign direct investment on the economies of OECD countries and are useful in terms of investing decisions and macroeconomic policies.

Does foreign direct investment influence carbon emission-related environmental problems?Contextual evidence from developing countriesacross Sub-Saharan Africa.

Sub-Saharan African nations face multifacetedenvironmental problems, especially those associated with carbon discharges. Hence, this study calculates a composite carbon index in the context of 39 developing nations from this region and uses it as a proxy for the carbon emission-related environmental problems they have faced during the 2000-2020 period. This index is estimated by utilizing data regarding annual carbon dioxide discharges, output-based carbon productivityrates, and energy consumption-based carbon intensity levels in the concerned countries. Hence, policy takeaways from this study have critical relevance for the selected sub-Saharan African nations to help them achieve the objectives related to the Sustainable Development Goals agenda and the Paris Accord. Overall, the findings from the econometric analysesverify that morereceipt of foreign direct investment initially raises but later on reduces environmental problems. Thus, the nexus concerning these variables depicts an inverse U-shape. Besides, the results endorse that greening the energy consumption structures of the sampled sub-Saharan African countries helps to abate their environmental problems in the long runwhile financial development aggravates the extent of environmental adversitiesthat take place. Lastly, improving the quality of regulatory agencies enables the Sub-Saharan African nations to furthermitigate their environmental problems. Moreover, these aforementionedfindings are observed to be heterogeneous across low- and middle-income categories of the selected Sub-Saharan African countries. Furthermore, the heterogeneity of the findings is also confirmed by the outcomes derived from the country-specific analyses. Nevertheless, these nations should attract clean energy-embodying foreign direct investment, make their energy consumption structures greener by amplifying renewable energy adoptionrates, introduce green fundsto develop their financial sectors, and make theirenvironmental regulatory agencies more transparent with their activities.

How Does the Exchange Rate and Its Volatility Influence FDI to Canada? A Disaggregated Analysis

This study investigates the relationship between the real effective exchange rate (REER) and its volatility with the net inflow of foreign direct investment (FDI) to Canada, placing a novel emphasis on sector-level analysis. The study utilizes time series data from 2007 to 2022 and employs the autoregressive distributed lag (ARDL) approach to assess short-run and long-run relationships between the said variables. The findings reveal significant impacts of changes in REER, its volatility, and GDP on net FDI in the short run, with lasting effects of REER and its volatility, lagged GDP, and trade openness on FDI in the long run. At the sectoral level, FDI inflows in energy and mining, manufacturing, finance, and insurance exhibit significant sensitivity to changes in REER. Simultaneously, the volatility of REER has a significant impact on FDI inflows in manufacturing industries and the finance and insurance sector in the short run. In the long run, REER exerts a significant influence on the net FDI inflows in energy and mining, as well as manufacturing industries. The asymmetry in findings suggests a need for sector-specific attention to retaining and attracting FDI to Canada.

Penanaman Modal Asing dan Penyerapan Tenaga Kerja di Provinsi Jawa Barat

Purpose – This research aims to analyze the influence of foreign direct investment (FDI) on labor absorption in West Java Province.
 Methods – Panel data from districts/cities in West Java in the 2017-2021 period were obtained from the Central Statistics Agency. Panel data regression analysis was carried out using the fixed effects method.
 Findings – The results of the analysis show that FDI has no effect on labor absorption in the West Java. In this research, it was found that labor absorption was influenced by education variables and gross regional income (GRDP) variables.
 Implication – The impact of FDI on labor absorption cannot be overstated. However, there is a possibility that it will take a long time for foreign investment to have an effect on labor absorption.
 Originality – Research on foreign investment in the province with the highest level of FDI in Indonesia on employment is still very rare to find. Moreover, this research utilizes panel data which statistically has advantages compared to cross-section or time series data alone.

The Analysis of the Influence of Foreign Direct Investment and Domestic Direct Investment on Economic Growth in the Province of Bengkulu


 
 
 
 Investment is one of the diverse factors influencing the economic growth of a region. This research focuses on foreign and domestic direct investment in the districts and cities of the Bengkulu Province. The aim of this study is to make a significant contribution to improving the welfare of the community in this region. Additionally, the research provides guidance to policymakers in developing effective investment strategies. The method employed in this research is quantitative, utilizing the EViews software. The study uses the values of the total Foreign Direct Investment (FDI) and Domestic Direct Investment (DDI) collected from the Bengkulu Province's Central Bureau of Statistics (BPS). It was found that FDI does not have a significant impact on economic growth, in contrast to DDI, which significantly contributes positively to the economic growth of the Bengkulu Province. It is important to note that this research was conducted in a single region and only utilized two independent variables.
 
 
 

Technology transfer for green investments: exploring how technology transfer through foreign direct investments can contribute to sustainable practices and reduced environmental impact in OIC economies.

Estimating the asymmetrical influence of foreign direct investment is the primary goal of the current study. In addition, further controlled variables affect environmental degradation in OIC nations. Due to this, current research employs the asymmetric (NPARDL) approach and the data period from 1980 to 2021 to estimate about viability of the EKC (environmental Kuznets curve) theory. The study utilized greenhouse gas (GHG) including emissions of carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and ecological footprint as substantial parameters of environmental quality. A nonlinear link between foreign direct investments, trade openness, economic growth, urbanization, energy consumption, and environmental pollution with CO2, N2O, CH4, and ecological footprint in the OIC nations is confirmed by the study's outcomes, which however reveals inconsistent results. Furthermore, the results also show that wrong conclusions might result from disregarding intrinsic nonlinearities. The study's conclusions provide the most important recommendations for decision-makers.

THE LONG-TERM EFFECT OF FOREIGN DEBT AND FOREIGN DIRECT INVESTMENT (FDI) ON ECONOMIC GROWTH IN INDONESIA

In light of Indonesia's status as a developing nation with constrained financial resources, the imperative for strategic decision-making by the government to foster sustained economic growth becomes evident. This research delves into an analysis of the enduring repercussions of foreign debt and foreign direct investment (FDI) on Indonesia's economic landscape. The study employs a comprehensive examination of time series data spanning from 1990 to 2022, employing both the Bounds test cointegration approach and the ARDL model to scrutinize the dynamics at play. The empirical findings underscore the multifaceted influence of foreign debt and FDI on Indonesia's economic growth, illustrating that these factors exert both short- and long-term impacts. Moreover, the research identifies the export control variable as a pivotal factor, indicating an immediate effect on Indonesia's economic development albeit without a lasting impact. Consequently, this unveils a nuanced interplay of variables that contribute to the nation's economic trajectory. In light of these insights, the study posits that the Indonesian government must adopt a judicious and discerning approach in formulating and executing policies related to exports, foreign debt, and FDI. Recognizing the dual temporal impact of foreign debt and FDI, policymakers are urged to balance short-term economic imperatives with a commitment to long-term sustainable growth. The immediate influence of the export control variable further underscores the need for agile and adaptive policy management to navigate the intricacies of Indonesia's economic landscape.

ВПЛИВ ПІІ НА ЗАЙНЯТІСТЬ В УМОВАХ ЦИФРОВІЗАЦІЇ ЕКОНОМІКИ: ПРИКЛАД КИТАЮ

The paper investigates how the evolution of the digitalization of economies alters the influence of foreign direct investment (FDI) on employment, using China as a case study. The study focuses on China, the largest developing economy, which has a significant influence on other economies, including Ukraine. With technological shifts demanding more skilled labor, particularly within the rapid growth of the digital economy, new pathways emerge regarding how foreign investment affects the host country's job market. The development of the digital economy can reduce the costs of information retrieval, production, transactions and delivery, etc. Beyond altering organizational practices, digital technologies also impact broader social dynamics. Understanding and leveraging digital transformation require consideration of both dimensions. To examine these aspects, a set of indices was employed, estimating digital economy development through entropy estimation and the coefficient of variation. These measurements formed the basis for a digital economy development index, utilizing indicators from four digitalization sectors: digital infrastructure, industry, innovation, and tool utilization. An empirical regression model integrated multiple indicators, such as employment rate, GDP, FDI, digitization coefficient, human capital, export rates, wages, and the proxy of interaction between FDI and the economy's digitization coefficient. Different sectors and regions within China were separately studied. Analyzing panel data across 30 Chinese provinces from 2001 to 2021 revealed that increased digitalization amplifies the positive impact of FDI inflows on domestic employment. Notably, this effect is more prominent in the service sector than in manufacturing, and it's relatively stronger in the less developed western provinces compared to the eastern and central ones. As the digital economy in the western regions is less mature, investments there yield relatively higher returns. These findings support the notion that employment grows alongside rising FDI inflows. However, it's crucial to highlight that digitalization increasingly shapes the intensity of FDI's influence on employment.