Research on the Impact of Digital Economy on Foreign Direct Investment in China

This research focuses on the impact of digital economy on foreign direct investment (FDI) in China. By combing the relevant literature, we clarify the connotation of digital economy, the influencing factors of FDI and the current research status of the relationship between the two. Built an Economic forecasting model based on the 31 provinces data 2013 - 2022, with total FDI as the explained variable, the Comprehensive Index of Digital Economy Development as the core explanatory variable, and human capital, trade openness, development economic level and industrial structure as the controlled variables. Descriptive statistics show that there is a big difference between the FDI and digital economy development level of China's provincial administrative regions. Benchmark regression results show that digital economy development has a facilitating effect on FDI, and the conclusion remains robust after autocorrelation, heteroskedasticity test and correction. Accordingly, policy recommendations are put forward to strengthen the construction of digital infrastructure, accelerate the agglomeration of digital industries, improve the digital governance system, optimize the environment for foreign investment and promote foreign investment cooperation in the digital field, with the goal of fostering the growth of the digital economy, attract overseas capital, and ensure the sustained and healthy advancement of China's economic landscape.