Does Urban Economic Resilience Affect Foreign Direct Investment?
Evidence from Chinese Cities
DOI:
https://doi.org/10.6981/FEM.202509_6(9).0003Keywords:
Economic Resilience; Foreign Direct Investment; Dual Circulation.Abstract
Foreign direct investment (FDI) is a crucial measure for China to leverage international markets and promote the “dual circulation” development pattern. Against the backdrop of growing economic uncertainty, exploring the determinants of FDI is of great significance. Existing literature has primarily focused on the definition, influencing factors, spatiotemporal evolution, and consequences of urban economic resilience. However, limited attention has been paid to the causal relationship between urban economic resilience and FDI. To fill this gap, this study conducts an empirical analysis using unbalanced panel data from 2011 to 2021. The findings reveal that urban economic resilience significantly promotes FDI, and the results remain robust under various tests. Heterogeneity analysis indicates that this positive effect is more pronounced in eastern, northeastern, and cities located east of the Hu Huanyong Line. In contrast, in central regions, economic resilience tends to inhibit FDI, while in western regions and cities west of the Hu Huanyong Line, the impact is not statistically significant.
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