Research On The Quality Of Foreign Direct Investment Of Shanxi Province

Production internationalization process is speeding up. China’s economic is enlarging.Industrial upgrading of the Eastern is pushing on area balanced development. The state is increasingpolicy tilt of the Midwest. Shanxi Province meets the powerful opportunity to achieve the economictransformation and across development. All contribute to provide a healthy developmentenvironment for the expansion for the utilization of FDI. In this context, the grasp of problems weneed to focus on should not be limited to the number of FDI in pursuit, but also to pursue thequality of that.Scholars have made great achievement for the research on the quality of FDI. However, as faras the exploit of that in province is concerned, it has not been analyzed roundly. In this paper, weresearch the quality of FDI of Shanxi Province from two levels, the structure characteristics andperformance, using large amounts of data analysis and actual cases. Then we put forward somecountermeasures for the main existing problems of using FDI.With this paper we first research on the quality of FDI, using statistical analysis andeconometrics analysis methods. The results show that the quality of FDI continuously is improvingthrough scale, origin and structure, but falling through the index of using pattern, and that FDIeconomic growth and export effect are obvious, and technological overflow and employment effectare limited. Secondly, through the analysis of actual condition of FDI enterprises, we found someproblems, such as a single origin, traditional using way, unbalanced industry distribution, thedefects of enterprise and government and faulty investment environment. Overall, the quality ofFDI is not high in Shanxi Province.For a long time, we focus on the increase of the number of FDI, instead of the promotion of thequality, because of the extensive pattern of economic growth. Parts of the FDI enterprises areattracted by one-off equipment business and the government’s preferential policy and other benefits.Some of the local enterprises only set eyes on the “blood transfusions” function of FDI, ignoring“blood-refreshing” ability, which results in the appearing shortcomings of using FDI. Forimproving the quality of the use of FDI form the root, it needs to adjust the strategies andcountermeasures of using FDI, changing by quantitative model to the latter. Therefore, I think there are two means to improve the quality of using FDI of Shanxi. On theone hand, it is needed to control the quality of entrance of FDI strictly, optimizing the structure ofFDI. On the other hand, we can promote the use of FDI performance and realize the economictransformation and across development of Shanxi by improving the level of technologytransformation of FDI corporations and enhancing absorption, the digestion and innovation abilityof local enterprises and creating the market environment of fair competition.