Foreign Direct Investment and Urban Economic Resilience
Yue Yang
Research Assistant, School of Interpreting and Translation Studies, Guangdong University of Foreign Studies, Guangzhou, China
Jing Ma
Researcher, Guangdong Institute of International Strategy, Guangdong University of Foreign Studies, Guangzhou, China
ABSTRACT:
This study explores the relationship between economic resilience and Foreign Direct Investment (FDI), with a particular focus on how FDI contributes to enhancing China’s economic resilience. Economic resilience, defined as the ability of an economy to absorb, adapt to, and recover from external shocks and uncertainty, has become an increasingly significant research topic in economics. This paper first reviews the origins and definitions of economic resilience, emphasizing its dynamic and complex nature, and discusses the key factors influencing economic resilience, such as institutional frameworks, technological innovation, industrial diversification, government policies, and social and financial infrastructure. Next, the study examines the impact of FDI, especially outward Foreign Direct Investment (OFDI), on China’s economic resilience. It reveals that FDI plays a pivotal role in improving China’s economic resilience by promoting technological spillovers, industrial diversification, structural upgrades, and employment growth. By reviewing both the literature and empirical studies, the paper highlights how FDI, through external capital inflows and advanced technology transfer, has facilitated China’s integration into the global economic system and strengthened its competitiveness. The paper concludes by suggesting future research directions, including the role of digital transformation, environmental resilience, and the differential impact of FDI across industries and regions.
Published in: International Journal of Research in Engineering, Science and Management (Volume 7, Issue 12, December 2024)
Page(s): 5-10
Date of Publication: 06/12/2024
Publisher: IJRESM
Cite as: Yue Yang, Jing Ma, “Foreign Direct Investment and Urban Economic Resilience,” in International Journal of Research in Engineering, Science and Management, vol. 7, no. 12, pp. 5-10, December 2024.