Digital Transformation Empowers Coordinated and Balanced Growth of Regional Two‐Way FDI

Digital transformation (DT) is reshaping China’s economic structure and development model, and whether it can effectively promote China’s high‐level opening‐up is worthy of in‐depth study. Therefore, using the provincial panel data of China from 2013 to 2023, this study examines the impact of DT on the coordinated and balanced growth of two‐way FDI in China. The results show that: (1) DT can significantly promote the coordinated growth of two‐way FDI (CGTFDI), and this conclusion is supported by a series of robustness tests and endogenous treatment. (2) Healthcare service efficiency can play an active mediating role in the influence of DT on CGTFDI. (3) With the increase of the level of CGTFDI, the promotion effect of DT on it will be enhanced. (4) In areas with higher environmental regulation intensity, stronger scientific and technical innovation ability and lower dependence on foreign investment, DT has a stronger promotion effect on CGTFDI. (5) DT can have a positive spatial spillover effect on CGTFDI, thus enabling regional two‐way FDI to achieve coordinated and balanced growth. The conclusion of the study is instructive for realizing high‐level opening‐up in the digital age.