The Nonlinear Characteristics and Spatial Differentiation of the Impact ofBidirectional FDI Collaboration on Digital Divide Bridging

Abstract

It is of great significance to evaluate and study the spatial dynamic evolution characteristics of the impact of bidirectional FDI collaboration on the bridging of the digital divide under the pattern of high-quality trade openness, which is of great significance for the construction of Chinese-style modern institutional opening-up. Based on the inter-provincial data in China from 2008 to 2020, this paper constructs a threshold panel model, empirically testing the nonlinear relationship between the bidirectional FDI collaboration and the digital divide bridging and discussing multiple heterogeneity and spatial spillover characteristics of the effect at the level of different economic factors according to the nature of the digital divide, and further intuitively describes the dynamic evolution characteristics of bidirectional FDI collaboration and digital divide bridging under the spatial pattern from a comprehensive perspective by the TSA, map classification and SDE analysis. The results show as follows: (1) there is a direct positive effect of the bidirectional FDI collaboration on the digital divide bridging, and this effect has triple heterogeneity at the level of three different economic factors: economic structure, urbanization level and human capital; (2) the effect is a single threshold effect, showing the nonlinear evolution characteristics of increasing marginal efficiency;(3) the effect shows “high-high” agglomeration in the eastern China and “low-low” in the western China. This conclusion should be helpful to further stimulate the endogenous potential of domestic factor allocation, promote the effective bridging of the digital divide between regions, broaden the breadth and depth of the development of the digital economy with bidirectional FDI, and seek the digital empowerment demonstration effect of the new development pattern under the condition of high-quality trade opening.