IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v80y2023icp214-221.html
   My bibliography  Save this article

Can the development of digital economy improve the quality of regional investment? — Empirical evidence from Chinese cities

Author

Listed:
  • Cheng, Shihui
  • Ma, Wenjing
  • Luo, Lai
  • Li, Yunlong

Abstract

This research investigates the effect of the expansion of the digital economy on the quality of regional investment introduction in China using city-level data from 2011 to 2019. The findings of the study indicate that the growth of the digital economy can greatly raise the calibre of regional investment, and this conclusion has withstood a number of robustness tests, including endogeneity. The growth of the digital economy primarily draws high-quality foreign investment through enhancing productivity, attracting talent, and increasing return on investment. A region’s high-quality development plan can increase the promotion effect of the digital economy on the quality of foreign investment, but the promotion effect of the digital economy on the quality of foreign investment clearly demonstrates regional variation.

Suggested Citation

  • Cheng, Shihui & Ma, Wenjing & Luo, Lai & Li, Yunlong, 2023. "Can the development of digital economy improve the quality of regional investment? — Empirical evidence from Chinese cities," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 214-221.
    • Handle: RePEc:eee:ecanpo:v:80:y:2023:i:c:p:214-221
    DOI: 10.1016/j.eap.2023.08.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592623001911
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eap.2023.08.006?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Daron Acemoglu & Pascual Restrepo, 2018. "The Race between Man and Machine: Implications of Technology for Growth, Factor Shares, and Employment," American Economic Review, American Economic Association, vol. 108(6), pages 1488-1542, June.
    2. Casella, Bruno & Formenti, Lorenzo, 2018. "FDI in the digital economy: a shift to asset-light international footprints," MPRA Paper 95201, University Library of Munich, Germany.
    3. Desbordes, Rodolphe & Wei, Shang-Jin, 2017. "The effects of financial development on foreign direct investment," Journal of Development Economics, Elsevier, vol. 127(C), pages 153-168.
    4. Satomi Kimino & David S. Saal & Nigel Driffield, 2007. "Macro Determinants of FDI Inflows to Japan: An Analysis of Source Country Characteristics," The World Economy, Wiley Blackwell, vol. 30(3), pages 446-469, March.
    5. Bruno Casella & Lorenzo Formenti, . "FDI in the digital economy: a shift to asset-light international footprints," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    6. Mossberger, Karen & LaCombe, Scott & Tolbert, Caroline J., 2022. "A new measure of digital economic activity and its impact on local opportunity," Telecommunications Policy, Elsevier, vol. 46(1).
    7. Choi, Changkyu, 2003. "Does the Internet stimulate inward foreign direct investment?," Journal of Policy Modeling, Elsevier, vol. 25(4), pages 319-326, June.
    8. Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
    9. Jonas Hjort & Jonas Poulsen, 2019. "The Arrival of Fast Internet and Employment in Africa," American Economic Review, American Economic Association, vol. 109(3), pages 1032-1079, March.
    10. Ren, Yuanming & Gao, Jingyi, 2023. "Does the development of digital finance promote firm exports? Evidence from Chinese enterprises," Finance Research Letters, Elsevier, vol. 53(C).
    11. Hatzius, Jan, 2000. "Foreign direct investment and factor demand elasticities," European Economic Review, Elsevier, vol. 44(1), pages 117-143, January.
    12. Pan, Xiongfeng & Guo, Shucen & Han, Cuicui & Wang, Mengyang & Song, Jinbo & Liao, Xianchun, 2020. "Influence of FDI quality on energy efficiency in China based on seemingly unrelated regression method," Energy, Elsevier, vol. 192(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Runze & Li, Zhijun & Xiao, Chunqu & You, Jiwang, 2023. "New engines of economic growth: How digital currencies lead the way to growth in the era of digital economy," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1597-1617.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Raphael Chiappini & François Viaud, 2021. "Macroeconomic, institutional, and sectoral determinants of outward foreign direct investment: Evidence from Japan," Pacific Economic Review, Wiley Blackwell, vol. 26(3), pages 404-433, August.
    2. Bhandari, Krishna Raj & Zámborský, Peter & Ranta, Mikko & Salo, Jari, 2023. "Digitalization, internationalization, and firm performance: A resource-orchestration perspective on new OLI advantages," International Business Review, Elsevier, vol. 32(4).
    3. Bricongne, Jean-Charles & Delpeuch, Samuel & Lopez-Forero, Margarita, 2023. "Productivity slowdown and tax havens: Where is measured value creation?," Journal of International Economics, Elsevier, vol. 143(C).
    4. Delera, Michele & Pietrobelli, Carlo & Calza, Elisa & Lavopa, Alejandro, 2022. "Does value chain participation facilitate the adoption of Industry 4.0 technologies in developing countries?," World Development, Elsevier, vol. 152(C).
    5. Hoshi, Takeo & Kiyota, Kozo, 2019. "Potential for inward foreign direct investment in Japan," Journal of the Japanese and International Economies, Elsevier, vol. 52(C), pages 32-52.
    6. Yilmaz Bayar & Marius Dan Gavriletea, 2018. "Foreign Direct Investment Inflows and Financial Development in Central and Eastern European Union Countries: A Panel Cointegration and Causality," IJFS, MDPI, vol. 6(2), pages 1-13, May.
    7. Fabrizio Leone, 2022. "Multinationals, Robots, and the Labor Share," Working Papers ECARES 2022-17, ULB -- Universite Libre de Bruxelles.
    8. Claudia Trentini & Joao de Camargo Mainente & Amelia Santos-Paulino, . "The evolution of digital MNEs: an empirical note," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    9. Jean-Charles Bricongne & Samuel Delpeuch & Margarita Lopez Forero, 2021. "Productivity Slowdown, Tax Havens and MNEs’ Intangibles: where is measured value creation?," Documents de recherche 21-01, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
    10. Aneta Bobenič Hintošová & Glória Bódy, 2023. "Sustainable FDI in the Digital Economy," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    11. Gnangnon, Sèna Kimm, 2022. "Internet, Participation in International Trade, and Tax Revenue Instability," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 37(2), pages 267-315.
    12. Joel Cariolle & Maëlan Le Goff & Olivier Santoni, 2017. "Telecommunications submarine cable vulnerability and local performance of firms in developing and transition countries," Post-Print hal-01569846, HAL.
    13. Li, Rui & Xu, Shoufu & Zhang, Yun, 2023. "Can digital transformation reduce within-firm pay inequality? Evidence from China," Economic Modelling, Elsevier, vol. 129(C).
    14. Jean-Charles Bricongne & Samuel Delpeuch & Margarita Lopez Forero, 2021. "Regional Productivity Slowdown, Tax Havens and MNEs’ Intangibles: where is Measured Value Creation?," Working papers 835, Banque de France.
    15. Irina G. Vladimirova & Natalia Yu. Konina & Viktor S. Efremov, 2020. "Transnationalization of multinational corporations: Peculiarities and trends," Upravlenets, Ural State University of Economics, vol. 11(4), pages 70-81, September.
    16. Cusolito,Ana Paula & Lederman,Daniel & Pena,Jorge O., 2020. "The Effects of Digital-Technology Adoption on Productivity and Factor Demand : Firm-level Evidence from Developing Countries," Policy Research Working Paper Series 9333, The World Bank.
    17. Deng, Ziliang & Falvey, Rod & Blake, Adam, 2012. "Trading market access for technology? Tax incentives, foreign direct investment and productivity spillovers in China," Journal of Policy Modeling, Elsevier, vol. 34(5), pages 675-690.
    18. Li Chen & Yuanbo Zhang, 2023. "Does the Development of the Digital Economy Promote Common Prosperity?—Analysis Based on 284 Cities in China," Sustainability, MDPI, vol. 15(5), pages 1-16, March.
    19. Ietto-Gillies, Grazia & Trentini, Claudia, 2023. "Sectoral structure and the digital era. Conceptual and empirical analysis," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 13-24.
    20. Ali Ahmed & Chris Jones & Yama Temouri, . "The relationship between MNE tax haven use and FDI into developing economies characterized by capital flight," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.

    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:ecanpo:v:80:y:2023:i:c:p:214-221. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.journals.elsevier.com/economic-analysis-and-policy .

    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.