Research On Performance Evaluation Of Chinese FDI Based On DEA

With the trend of economic globalization, Foreign Direct Investment gradually becomes the most popular channel attracting foreign funds for developing countries. Since the reform and opening policy in 1978, allowing foreign investor to invest in China, foreign direct investment has played a significant positive role to increase our economic development. Foreign Direct Investment has brought about a series of economical effects, including capital, new technological skills and management experiences, etc. Attracting Foreign Direct Investment is becoming one of the most important strategies of China. At the same time, we also need to attention the negative effects. So, needing to research the performance evaluation of Chinese Foreign Direct Investment.At present, there are many scholars taking different ways (such as Panel Data model, Game Theory model etc. ) to research the effects of Chinese FDI. This paper takes Data Envelopment Analysis methods to research the performance evaluation of Chinese Foreign Direct Investment. Introducing the virtue of Data Envelopment Analysis and the classical C~2R model. In the end, making practical analysis about Foreign Direct Investment from the year 1993 to 2005 based on C~2R model and taking the Linear Programming methods of Excel to solve this model.