A Study on The Impact of Digital Economy and Environmental Regulation on Attracting IFDI In China

Authors

  • Jiamin Zhang
  • Yongjian Zong

DOI:

https://doi.org/10.54097/hbem.v20i.13291

Keywords:

Environmental regulation; digital economy; IFDI.

Abstract

This paper analyzes environmental regulation and digital trade in the same framework, and discusses the impact of environmental regulation, digital economy and their coupling effects on IFDI. Based on the panel data of 31 provinces from 2003 to 2021, a panel fixed effect model is constructed for empirical testing. The results show that environmental regulation can inhibit the inflow of IFDI. Digital economy can promote IFDI. The coupling effect of environmental regulation and digital economy can promote IFDI, and the promoting effect is more significant. Therefore, while accelerating the development of the digital economy, the state government should actively adjust the level of environmental regulations, so that they can promote each other, encourage enterprises to transform green and improve the awareness of intellectual property protection, promote the entry of high-quality foreign investment, and help the economy to achieve high-quality development.

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Published

30-11-2023

How to Cite

Zhang, J., & Zong, Y. (2023). A Study on The Impact of Digital Economy and Environmental Regulation on Attracting IFDI In China. Highlights in Business, Economics and Management, 20, 558-566. https://doi.org/10.54097/hbem.v20i.13291