Research on the Foreign Direct Investment Effect of Regional Economic Cooperation Based on Difference-in-Difference Model

Abstract

Based on the sample data of 176 countries in 2009-2017, the double difference method is used to study the foreign direct investment effect of the regional economic co-operation and conduct in-depth heterogeneity research and mechanism discussion. The results show that the foreign direct investment effect of the regional economic co-operation is generally positive and gradually increase, but not significant; regional heterogeneity are obvious: The policy effect on the Central South Peninsula and China-Pakistan Economic Corridor is greater than that on other economic corridors. In-depth institutional exploration shows that infrastructure mechanisms and unique advantages mechanisms are the two major paths to exert policy effects. Finally, we put forward Suggestions on strengthening government cooperation and unique advantages on the basis of the actual conditions of different countries.