Research On The Impact Of Foreign Direct Investment On The Investment Efficiency Of Mineral Resource Enterprise

Since China’s reform and opening up,its economy has grown at a remarkable rate,and investment has played an important role in promoting it.However,the economic growth model that relies only on "quantity" and ignores "quality" is not conducive to the sustainable development of China.At present,with the intensification of global geopolitical strife,mineral resources and their materials industry supply chain security issues are of concern to all countries,China as a major country in demand for mineral resources,the vast majority of strategic mineral resources are dependent on imports,resulting in many security risks.At the same time,the current problems of a single financing method for mineral resource enterprises,low investment efficiency and frequent mining violations have seriously restricted the further development of China’s mining industry.Therefore,against the background that China is the world’s largest FDI inflow country,the economic structure is continuously optimized,the structural reform on the supply side of the mining industry is deeply promoted,the foreign investment policy in the mining industry is more proactive,and the country is coordinating security and development,the systematic study on how to use foreign investment to guide mineral resource enterprises to improve their investment efficiency while ensuring national security has important research value and significance for the high-quality development of the economy.This paper takes the impact of foreign direct investment on the investment efficiency of mineral resource enterprises as the research topic.Based on the summary of previous studies on foreign direct investment and investment efficiency of mineral resource enterprises,it introduces the characteristics and development trend of mineral resource enterprises,and analyzes the current situation of foreign investment utilization and investment efficiency of mineral resource enterprises.Based on the theory of foreign direct investment and enterprise investment theory,we establish a residual model to measure the degree of inefficient investment in mineral resource enterprises in China.This paper empirically analyzes the impact of foreign direct investment on the investment efficiency of mineral resource enterprises using the data of mineral resource enterprises from 2016-2021.It is found that foreign direct investment can significantly improve the investment efficiency of mineral resource enterprises;and the positive effect is more significant in the underinvestment sample.Further analysis of the ownership and location characteristics of enterprises reveals that FDI plays a more significant role in state-owned mineral resource enterprises than in non-state-owned mineral resource enterprises,and that FDI plays a more significant role in central and western regions than in eastern regions.Finally,this paper also studies the impact mechanism of foreign direct investment on the investment efficiency of mineral resource enterprises from the two variables of financing constraint and security risk,and concludes that foreign direct investment can effectively alleviate the financing constraint of mineral resource enterprises and thus improve the investment efficiency;however,to a certain extent,it increases the national security risk and thus reduces the investment efficiency of mineral resource enterprises.The research results of this thesis have important implications for improving the investment efficiency of mineral resource enterprises in an open environment under the background of integrated security and development.