Fdi In China, The Quality Of Research

This paper study on Foreign Direct Investment(FDI) Utilization Quality of China base on North's State Theory, we firstly divided the purpose of a State for using FDI as enhancing the national economic security and promoting national economic development. Country-based perspective on China's gain on utilization of FDI including both of positive and negative effects, and then, use the analytical tools and Analytic Hierarchy Process (AHP) to build comprehensive assessment index system for assessing China's FDI utilization quality. In this paper, the weight of the lowest tier has been determined by entropy method, the first and the second tier has been determined by AHP, and then, we use the combination of Gray system theory and AHP(GAHP) for an empirical analysis of China's FDI utilization quality from 1995 to 2009, and the gray GM (1,1) model has been used for predicting FDI utilization quality in China from 2010 to 2014. After carefully investigate the empirical results, we propose some measures to improve China's FDI utilization quality.In order to verify the comprehensive evaluation index system we creat in the paper, some cautious analysis on the country's economic security and national economic development have been enforced by using the factor analysis evaluation. Evaluation results combined with the weight we gained from AHP in this paper compare to the results we gain from GAHP. The results confirmed the integrity of comprehensive assessment index system constructed in this paper.After the empirical analysis of China's FDI utilization quality, we found:(1) FDI utilization quality should be the measurement of the "economic man" introduce FDI to what extent to meet its purpose, that means how much the utility the country get from the introduction and use of FDI; Secondly, FDI is a relative advantage of quality, Dynamic concept. The purpose of the national introduction of FDI is a dynamic development, different periods, different purposes, different utilization quality, so the evaluation criteria must also be dynamic development;(2) Based on the above definition of theory and North's State Theory we build evaluation index system for comprehensive assessment of China's FDI utilization quality, which had been divided into the impact of national economic security and national economic development. Subsequenty, we use relevant theories and empirical models to verify the evaluation index system, the results show that the evaluation index system can performance well for comprehensive assessment of China's FDI utilization quality;(3) The empirical results show that China's FDI utilization quality shows an upward trend from 1995 to 2002, and after that period it decreased sharply, and the overall efficiency is not high. Meanwhile, the use of GM (1,1) Grey forecasting model also showed that if we pay little attention on FDI utilization quality, things will get worse. This results are quite different from existing studies, mainly due to previous studies did not take the FDI how to affect national economic security into account;(4) China's FDI utilization quality should be divided into two stages: first,1995-2001, FDI inflows during this period not only promoted national economic development but also the national economic security, FDI utilization quality stay in a high level; the second is 2001-2009, with the growing number of FDI, FDI both threat the country's national economic security and economic development, FDI utilization quality lacks efficiency.Finally, this paper argues that the FDI utilization quality in China is not optimistic as the results of some scholars, there is still a long way to go. Especially after 2002, FDI utilization quality declining year by year forced us to worry about the future economic trend, we need a preventive measure, on the one hand to make good use of FDI on the positive side, on the other hand, we must be aware of the negative effects of FDI.