A Study On Diversity Of Efficiency Of Utilization Of FDI In Chongqing

Foreign direct investment has become important funding sources and fundamental part in a nation or region's economic development. As the western development strategy was developing in-depth and pilot area of urban and rural was established, foreign Direct Investment in Chongqing faced many new opportunities.Chongqing has increased the intensity of foreign direct investment, but the efficiency of utilization of foreign direct investment is still behindhand compared with similar areas.Therefore, this study intends to answer the following questions:Firstly, How behindhand the efficiency of utilization of foreign direct investment gross in Chongqing compared with similar areas; secondly, How behindhand the efficiency of utilization of foreign direct investment structure in Chongqing compared with similar areas; Thirdly, the factors that affect the efficiency of foreign direct investment and the degree of the effect; Foruthly, how to enhance the efficiency of foreign direct investment. Therefore, this research has importantly practical significance.The content:To solve the above problems, this paper studies from the following aspects.1. Related concepts and basic theory of foreign direct investment. The first are definitions of foreign direct investment, foreign capital utilization efficiency and evaluation indicators, and the review of the efficiency theory and international investment theory.2. Status quo and features of foreign Direct Investment in size and structure. The size is under the national average. The funding source is single, which is mainly from Asia and few from developed country. The utilizing way of capital is a single, which is mainly limited to the sole proprietorship, cooperative, joint venture. The regional distribution is imbalance, which is concentrated in one-hour economic circle. This part provides a reality reference for the further research.3. Research of utilizing efficiency of foreign direct investment from total efficiency and structure efficiency basing on Statistical data. This part makes compare between Chongqing with the other three municipalities from four indicators in total efficiency of the foreign direct investment, and makes compare from regional, industry, and utilizing way. The outcome is that Chongqing is at a low level efficiency.4. Analysis of factors. There are four factors, and the economic development and openness are the most important factors in efficiency of foreign direct investment basing on the correlation analysis.5. Countermeasures to enhance the efficiency of foreign direct investment.Main conclusions:1.Foreign direct investment gross is 1.8534 billion U.S. dollars till 2007, equal to 1 percent of whole China, which are 5.066 billion U.S. dollars,7.92billion U.S. dollars and 5.278billion U.S. dollars in Beijing, Shanghai and Tianjin. The size is small Compared with the other three municipalities. This study measured the utilizing efficiency of foreign direct investment and made compare between Chongqing and the other three municipalities from four indicators. The results showed that the average performance index in Chongqing reached only 0.56 between 2003 to 2007, which are 1.55,2,22 and 2.65 in Beijing, Shanghai and Tianjin greater than 1. The average dependence of foreign investment in Chongqing is only 1.45% in five year, which are 4.07%,6.01% and 6.92% in Beijing, Shanghai and Tianjin. The yield rate and utilizing rate in Chongqing are 31.83 percent and 54.14 percent, which is considerable comparing with the other three municipalities. However, the performance of two indices of Chongqing shows unstable and volatile comparing with the other municipalities.2. There was serious regional imbalance in utilizing of foreign direct investment from structure efficiency differences in Chongqing, foreign direct investment was concentrated in the main city of nine districts. But the result of the DEA shows that by including analysis of available data, in main city of nine districts, foreign direct investment in Yubei District, Dadukou District and Beibei District were effective, and Yuzhong District and Nanan District were Decreasing scale, the other four areas was the scale of increasing efficiency. This fully illustrated foreign direct investment size was big in some district, but efficiency was poor, there was need for positive adjustment. From the point of view of FDI in the industrial structure, through the structure bias, structural deviation in the tertiary industry is often greater than 0, the deviation structure in second industry deviation is fluctuating, and structure deviation index of the first structure often less than 0. Therefore, the major foreign investment in Chongqing biased in favor of secondary and tertiary industries, and its utilizing level is fit to economic development, while the primary industry can not get foreign direct investment. Therefore, in order to balance the level of investment in each industry, the government should actively guide foreign direct investment to the first and second industrial investment. From the utilization efficiency of different investment perspective in Chongqing recent years, foreign equity method shows strong growth in the future development.3. Factors that influence the efficiency of foreign direct investment are complex, in general can be summarized as four key factors that the level of regional economic development, local investment conditions, human capital status and Level of opening up. Through correlation analysis, factor analysis revealed that correlation coefficient of four major factors that influenced the utilization efficiency were 0.85,0.67,0.80 and 0.84 Therefore, the most critical factors that influence the efficiency of foreign direct investment were the level of economic development and Level of opening up.Policy recommendations:From the major constraints factors of foreign direct investment in Chongqing, this paper made countermeasures for improving foreign direct investment efficiency form four aspects.1. Promoting economic development, broadening the use of foreign direct investment scale, attracting investment from multi-channel, multi-faceted, diversified expansion; 2.Adjusting industrial structure, optimizing the structure of utilizing of foreign direct investment; 3. Improving the city's attractiveness, improving the investment environment; 4. Promoting human resources strategy, cultivating innovative talents.