Impacts of FDIs and Suggestions for Attracting FDIs

Through the regression analysis method based on data on FDI and labor productivity of 63 provinces/cities in the period from 2010 to 2021, the results allow to confirm that FDI has an impact on local productivity in 4 aspects. Specifically, creating favorable conditions and environment for investors, proposing support packages to encourage FDI projects with large capital scale, using a large number of employees, and achieving high revenue efficiency. And this paper also suggests some solutions to attract FDI in terms of both quality and quantity of FDI projects.