Space panel model costruction of the correlation between FDI and local economic policy based on high dimensional data regression analysis

Abstract

In this paper, the spatial dobbin model is used to analyze the spatial impact of local government competition and land price on foreign direct investment. The data came from 69 prefecture level cities in five provinces in Central China, time from 2005–2015. The empirical research shows that the higher the level of regional economic development, the better the road traffic conditions, the lower the industrial land price and the higher the degree of government competition, the more the FDI will flow into the region. The impact of environmental regulation on FDI is not obvious. In other areas, the level of economic development, the increase of industrial land price and the enhancement of environmental regulation intensity will promote the level of foreign investment in this area, while the traffic improvement in other areas and the intensification of government competition will inhibit FDI in the region. The results show that the means of attracting FDI among governments in order to achieve economic goals are available and effective.

Keywords

Copula function neural network government competition foreign direct investment space spillover effect

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