Financial Deepening And Foreign Capital Utilization Efficiency

Foreign capital utilization efficiency means that host country use the effective foreign capital in right amount on terms of fully utilization domestic fund. Foreign capital utilization inefficiency shows domestic fund waste with foreign capital flowing and speclative foreign capital flowing. According to " dual gaps " theory and capital flight theory, our country's foreign capital utilization store poor efficiency. Exactly proceed from this, on the appraisal that we locked studying in the Chinese foreign capital utilization efficiency problem and factor influencing Chinese foreign capital utilization efficiency of searching. In the influence factors of the utilization efficiency of the foreign capitals, we conbine financial deepening and foreign capital utilization efficiency, and probe into the inner link between them.Because of financial suppressing in China, such as finance monopolize,interest rate non-marketization and exchange rate non-marketization, a large number of foreign capitals flow into in a situation that the domestic fund has not been fully used, which causes the waste of the domestic fund; On the other hand,some speculative foreign capital flows into domestic financial market, realizes arbitrage and obtains monopolize rent. Just because of this, we say it is the financial suppressing that influences the utilization efficiency of foreign capital of our country. The constant enhancement of financial deepening, the waste of the domestic fund and speculative foreign capital will all be reduced, and financial development of host country will offer for foreign-investment enterprise fine financing support and optimize host country industrial structure that foreign capitals utilize.Finally, through theory analysis and empirical examinations, we draw conclusions: The inefficient question of utilization of foreign capital exists positively in our country; The utilization efficiency of the foreign capitals and financial deepening succeed positive correlation relations, the higher degree of financial deepening, the higher efficiency of the utilization of foreign capital. The empirical examinations result after 1994 totally accords with the theory of finance deepening and foreign capital efficiency, it is because the finance was deepened and did not get substantive improvement not to accord with before 1994. The foreign capital efficiency of one of the shortfall is higher. So, the explanation of the efficiency of the foreign capital should conbine dual gaps theory and financial deepening theory.