IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v157y2026ics0264999326000325.html

Can the cross-border e-commerce comprehensive pilot area policy improve China's FDI quality?

Author

Listed:
  • Cao, Yunshi
  • Wang, Yanzhen
  • Hong, Chang
  • Ji, Shengbao

Abstract

Through policy innovation, digital empowerment, and business environment optimization, the cross-border e-commerce comprehensive pilot area (CECPA) policy plays a crucial role in improving foreign direct investment (FDI) quality. However, empirical evidence on its effects and underlying mechanisms remains limited. Using 2009–2021 panel data for 257 Chinese cities, this study applies a multiperiod difference-in-differences model to assess the CECPA policy's impact on FDI quality. The results show that the policy significantly enhances FDI quality, and the findings remain robust across tests. Mechanism analysis indicates that CECPA improves FDI quality by strengthening digital industry agglomeration, technological innovation, and value-added tax reduction. Heterogeneity tests reveal stronger effects in non-core and non-resource-based cities, as well as in cities with higher human capital and more advanced digital infrastructure. Additional analysis shows that the CECPA policy contributes to economic growth by improving FDI quality. Overall, this study offers practical insights for regions seeking to leverage the CECPA policy to enhance FDI quality and stimulate economic development.

Suggested Citation

  • Cao, Yunshi & Wang, Yanzhen & Hong, Chang & Ji, Shengbao, 2026. "Can the cross-border e-commerce comprehensive pilot area policy improve China's FDI quality?," Economic Modelling, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:ecmode:v:157:y:2026:i:c:s0264999326000325
    DOI: 10.1016/j.econmod.2026.107503
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999326000325
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2026.107503?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • L81 - Industrial Organization - - Industry Studies: Services - - - Retail and Wholesale Trade; e-Commerce
    • P45 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - International Linkages

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:157:y:2026:i:c:s0264999326000325. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.