The influence of FDI and environmental uncertainty on the business performance of enterprises-- A case study of manufacturing enterprises

Abstract

Based on the panel data from 2016 to 2020 in various provinces, the influence of FDI and environmental uncertainty on the business performance of enterprises is analyzed in this paper. According to the research results, it is found that, under the regulation of environmental uncertainty, FDI has a significant positive influence on improving the business performance of China's enterprises, while the enhancement of environmental uncertainty will significantly weaken the influence of FDI on business performance of enterprises, namely, inhibition effect will appear;In addition, due to the different regulatory effects of factors including the degree of economic development in different regions, a significant difference between the influence of FDI on business performance has formed. Finally, from the macro perspective, some suggestions that the state and the government should give support to manufacturing enterprises from the aspects of macroeconomic environment and policies are proposed in the paper. And from the micro perspective, manufacturing enterprises should look for measures to release the vitality of enterprises according to the internal factors affecting the business performance from the behavior of their micro-economic subjects is also put forward in this paper.