Study On The Performance And Quality Of FDI In Northeast Of China

In the process of globalization,FDI worked as one of the core elements, with very important effect on economic growth and social development of China,and it became the focus of governments consideration when policies were made in attracting investments.No matter where it is, the economic situation changes quickly Ⅱn order to adapt to the new trend of economic globalization better.our country must speed up the transformation of economic development mode.We should focus on improving the quality and efficiency of economy increasing. For a long time, FDI inward in China has been keeping "number growth" pattern.In order to make it transformed from quantity to quality,there were so many reports published,which were called China’s "Eleventh Five Year Plan","Twelfth Five Year Plan" and "Certain Opinions of the State Council on further Improving the Utilization of Foreign Investment "issued by the State Council in April2010.A11of them have put forward requirements like " improving the quality and level of utilizing foreign investment",which can be combined with the requirements of the national industrial restructuring and revitalization.At the same time.we should increase the introduction of foreign investment and encourage them entering into high-end manufacturing, high-tech industries, modern service industry and so on.The18th National Congress report also points out that China must put more proactive openness strategy and improve the overall level of the open economy, especially emphasizes on the importance of "improve the utilization of FDI comprehensive advantages and overall efficiency".The FDI performance and quality level of a country (or area) play an important role for the further introduction of FDI. August8,2014, the latest document called "the State Council proposes several major advice on supporting the revitalization of the Northeast in China"pointed out that in order to solve the situation about economic growth lasting declined,we should consolidate and expand the achievements in Northeast, further promoting the quality and efficiency of economics.So the performance and quality of FDI are more important to it. This thesis studies the performance and potential of FDI in Northeast scientifically.It uses two indicators named inward FDI performance index and potential index which come from "2002World Investment Report" issued by UNCTAD, and they are appropriately amended to adapt to the specific areas.The thesis uses Factor Analysis for evaluating the FDI quality in Northeast more scientificallyThe results show that.the whole FDI performance of Northeast situates at the medium level under the comparison with other areas in China.But the separated provinces in Northeast present an unbalanced development.The FDI performance index in Liaoning is nearly3times higher than that in Heilongjiang.Liaoning also maintains the higher FDI comprehensive quality.while Jilin catches the higher use of FDI.But in Heilongjiang neither the scale nor the performance of FDI is high.In order to promote FDI performance level and the quality in Northeast,there are some corresponding recommendations put forward from the view of the macro,middle and micro. Also, the theoretical references can be made out to the Northeast area for government’s economy strategy and high quality inflows, also to other regions and different industries in China.The innovation of the paper include two aspects:Firstly,the FDI source technology index which is constructed to study the Northeast FDI source distribution structure. Secondly, during the process of researching FDI potential index of the Northeast region,an indicator named "the number of mobile phone per thousand people have" is selected to measure the introducing FDI potential of different areas effectively.Shortcoming is using the method called ratio comparison to measure the FDI industry distribution when describe the situation of northeast area without considering the influence of the industry’s technology.