Author(s)

Yao Zongyu ¹

Affiliation(s)

¹ School of Economics and Management, Guangdong Technology College, Zhaoqing, China

Corresponding Author

Yao Zongyu

ABSTRACT

According to economic theory, efficient market and capable government are the principles to follow when formulating economic policies. Foreign direct investment (FDI) is an important factor affecting the efficiency of local governments. Using China's provincial panel data, this paper analyzes the impact of FDI with different motives on the performance of active local governments from a microeconomic perspective. The results show that market-oriented FDI has a promoting effect on the improvement of the efficiency of local governments, while resource-oriented FDI has a negative but not significant impact on the efficiency of local governments.

KEYWORDS

Resource-oriented FDI; Market-oriented FDI; The efficiency of local governments; Microeconomic analysis

CITE THIS PAPER

Yao Zongyu, Microeconomic Analysis of the Relationship between FDI Orientation and Local Government Performance. Population, Resources & Environmental Economics (2024) Vol. 5: 157-164. DOI: http://dx.doi.org/10.23977/pree.2024.050218.

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