Can the development of digital economy improve the quality of regional investment? - Empirical evidence from Chinese cities

This research investigates the effect of the expansion of the digital economy on the quality of regional investment introduction in China using city-level data from 2011 to 2019. The findings of the study indicate that the growth of the digital economy can greatly raise the calibre of regional investment, and this conclusion has withstood a number of robustness tests, including endogeneity. The growth of the digital economy primarily draws high-quality foreign investment through enhancing productivity, at-tracting talent, and increasing return on investment. A region's high-quality development plan can increase the promotion effect of the digital economy on the quality of foreign investment, but the promotion effect of the digital economy on the quality of foreign investment clearly demonstrates regional variation. (c) 2023 Published by Elsevier B.V. on behalf of Economic Society of Australia, Queensland.