A Study On Evaluation And Analysis Of Utilization Quality Of FDI In Zhejiang Manufacturing Industry

Since the reform and opening up, especially after Deng Xiaoping’s speech in southChina and China’s entry into WTO, the amount of FDI in Zhejiang Province realizedtwo big spans, also the scale and scope of FDI are expanding by time. But along withthe FDI quantity growth, some problems appeared inevitably：the blind pursuit ofinvestment quantity of local government, the disappearance of cost advantage and theenvironmental problems and so on. Also to Zhejiang province which is characterized byprivate enterprises, the phenomenon that domestic economy and foreign capitaleconomy are like "two pieces of skins" is outstanding in a long term. Therefore, how tostrengthen the domestic and foreign economic correlation, to promote each other toachieve common development have become the emphasis and difficulty of Zhejiangeconomic development. Zhejiang "Twelfth Five-Year Plan" also puts forward clearly toenhance the level of utilizing foreign investment requirements. Therefore, under thenew situation, researching the quality of FDI in Zhejiang province has important sensefor promoting Zhejiang economy actual strength and upgrading the industry structure.This paper uses methods of qualitative and quantitative analysis combination,theory and empirical research combination. Also using the methods of general statistics,regression analysis, principal component analysis and factor analysis, with Zhejiangannual statistical data, study the introduction quality of FDI and calculate the utilizationquality of FDI from four aspects.Through the statistical analysis and empirical research, the author found that FDIhad high introduction quality on industrial investment and project scale, but had lowintroduction quality on the source structure and regional distribution. By analyzing fromtwelve indexes of Zhejiang manufacturing industry overall utilization quality the authorfound that, the utilization quality continuously increased in the period, but mainlyowned to the economic development quantity factor, and institution factor andeconomic development quality factor also contributed to it. By analyzing from eightindexes of Zhejiang sectors of manufacturing industry the author found that, theutilization quality of each industry varied in certain laws. Technology intensive industrystay stably in high quality industry and labor intensive stay in middle, and capitalintensive industry had the lowest quality. The economic quantity factor had largestcontribution to the utilization quality and technology and management level factor followed. In summary, the utilization quality of FDI in Zhejiang manufacturingindustry is still quantitative rather than qualitative.The evaluation index system proposed in this article for manufacturing industryenriches and perfects the existing theory. There is no literature do comprehensive anddeep research on Zhejiang manufacturing industry of FDI quality until now. This paperselected Zhejiang province as the research object, making up for the lack of literature.According to the research result, this article put forward constructive policy suggestionslike encourage Multi-National Corporation to establish R&D center in Zhejiang and pututilization quality of FDI into the evaluation system.