IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i21p9864-d1787900.html
   My bibliography  Save this article

Research on the Impact of Coordinated Two-Way FDI Development on Industrial Chain Modernization: From the Perspective of Factor Allocation

Author

Listed:
  • Yue Ling

    (School of Economics, Lanzhou University, Lanzhou 730107, China)

  • Yi Li

    (School of Economics, Lanzhou University, Lanzhou 730107, China)

  • Huiling Wang

    (School of Economics, Lanzhou University, Lanzhou 730107, China)

Abstract

Industrial chain modernization is vital for driving the development of a modern country, boosting national competitiveness and upholding economic security. This study examines the impact of coordinated two-way FDI development on industrial chain modernization from the perspective of factor allocation, using panel data from 30 Chinese provinces from 2013 to 2023. The empirical results show that coordinated two-way FDI development significantly boosts industrial chain modernization. This finding holds across multiple robustness tests. Mechanism analysis confirms that the alleviation of capital-labor factor misallocation serves as a key transmission channel. Furthermore, heterogeneity analysis reveals significant heterogeneous effects across regions, ownership structures, investment types, and industry sectors. Notably, the synergistic interaction between downward-gradient inward FDI and reverse-gradient outward FDI, along with coordinated two-way FDI development in the manufacturing sector, has the highest gray correlation degree with industrial chain modernization. These findings provide a solid theoretical basis and practical policy insights for advancing industrial chain modernization.

Suggested Citation

  • Yue Ling & Yi Li & Huiling Wang, 2025. "Research on the Impact of Coordinated Two-Way FDI Development on Industrial Chain Modernization: From the Perspective of Factor Allocation," Sustainability, MDPI, vol. 17(21), pages 1-28, November.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:21:p:9864-:d:1787900
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/21/9864/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/21/9864/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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:gam:jsusta:v:17:y:2025:i:21:p:9864-:d:1787900. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.