The impact of digitalization on foreign direct investment inflows into cities in China

AbstractThis paper explores the impact of digitalization on Foreign Direct Investment (FDI) inflows in 270 Chinese cities from 2012 to 2019, focusing on regional disparities in income levels. Employing the System Generalized Moment Method (GMM), it aims to bridge the gap in understanding how digital...

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Main Authors: Dansha Zhang, Tajul Ariffin Masron, Xiutuan Lu
Format: Article
Language:English
Published: Taylor & Francis Group 2024-12-01
Series:Cogent Economics & Finance
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23322039.2024.2330458
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author Dansha Zhang
Tajul Ariffin Masron
Xiutuan Lu
author_facet Dansha Zhang
Tajul Ariffin Masron
Xiutuan Lu
author_sort Dansha Zhang
collection DOAJ
description AbstractThis paper explores the impact of digitalization on Foreign Direct Investment (FDI) inflows in 270 Chinese cities from 2012 to 2019, focusing on regional disparities in income levels. Employing the System Generalized Moment Method (GMM), it aims to bridge the gap in understanding how digitalization influences FDI inflows across regions with different income levels. The findings indicate a positive correlation in low-income cities where digitalization significantly attracts FDI, but this effect is limited in medium and high-income cities. These results highlight that incentives and digital infrastructure development could be crucial for enhancing FDI in lower-income regions, making digitalization a potential strategic tool for economic growth.
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spelling doaj.art-e9ebaa6879924f8180f6da2a8c512e682024-04-02T13:42:14ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2024.2330458The impact of digitalization on foreign direct investment inflows into cities in ChinaDansha Zhang0Tajul Ariffin Masron1Xiutuan Lu2School of Finance and Economics, Nanning College for Vocational Technology, Nanning, ChinaSchool of Management, Universiti Sains Malaysia, Minden, MalaysiaSchool of Finance and Economics, Nanning College for Vocational Technology, Nanning, ChinaAbstractThis paper explores the impact of digitalization on Foreign Direct Investment (FDI) inflows in 270 Chinese cities from 2012 to 2019, focusing on regional disparities in income levels. Employing the System Generalized Moment Method (GMM), it aims to bridge the gap in understanding how digitalization influences FDI inflows across regions with different income levels. The findings indicate a positive correlation in low-income cities where digitalization significantly attracts FDI, but this effect is limited in medium and high-income cities. These results highlight that incentives and digital infrastructure development could be crucial for enhancing FDI in lower-income regions, making digitalization a potential strategic tool for economic growth.https://www.tandfonline.com/doi/10.1080/23322039.2024.2330458Digitalizationforeign direct investmentregional analysisGMMChinaGoodness Aye, Academic Editor, University of Agriculture, Makurdi Benue State, Nigeria
spellingShingle Dansha Zhang
Tajul Ariffin Masron
Xiutuan Lu
The impact of digitalization on foreign direct investment inflows into cities in China
Cogent Economics & Finance
Digitalization
foreign direct investment
regional analysis
GMM
China
Goodness Aye, Academic Editor, University of Agriculture, Makurdi Benue State, Nigeria
title The impact of digitalization on foreign direct investment inflows into cities in China
title_full The impact of digitalization on foreign direct investment inflows into cities in China
title_fullStr The impact of digitalization on foreign direct investment inflows into cities in China
title_full_unstemmed The impact of digitalization on foreign direct investment inflows into cities in China
title_short The impact of digitalization on foreign direct investment inflows into cities in China
title_sort impact of digitalization on foreign direct investment inflows into cities in china
topic Digitalization
foreign direct investment
regional analysis
GMM
China
Goodness Aye, Academic Editor, University of Agriculture, Makurdi Benue State, Nigeria
url https://www.tandfonline.com/doi/10.1080/23322039.2024.2330458
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