The Research On FDI Quality Of Liaoning Province

Foreign direct investment (FDI) plays an important role in a country’s economic growth and economic development, which is also a crucial manifestation of economic globalization. FDI is composed by the foreign capital’s inflow and outflow, and making use of FDI is that, the host country has an inflow allocated taking consider the production effective and the balanced economic and social development.Using FDI includes the scale and the quality, and recently Liaoning Province has a continually expanding scale, so that average annual rate of growth of actual utilization of FDI was significantly higher than the national average level during Eleventh Five-Year, especially experiencing international financial crisis in2008, still keeping a high growth rate of more than25%. However, we would better to see if the continued expansion of the scale accompanied by the quality improvement. The quality in use of FDI by Liaoning province not only has an effect on the changing way of the economy growth from extensive to intensive, but also on ecological environment and so on the quality of people life. Improving the quality of FDI, with the proper scale at the same time, and changing FDI model from quantity to quality, is of crucial importance to the Liaoning province economic growth and development.In structure, this paper is divided into six parts.The first chapter is introduction, analyzing the background and significance of the topic, gathering related reviews on the quality of using FDI, with the description on research method.The second chapter is to establish the theoretical foundation and evaluation index, including the theory of FDI, and establishing evaluation index on the quality of using FDI in Liaoning, divided into direct and indirect evaluation index, and also having an explanation on the data source. The third chapter is to establish the model and explain it, following by the introduction of the traditional DEA model, super-efficiency DEA model, dynamic DEA window analysis and Malmquist index.The fourth chapter is the evaluation of direct and indirect efficiency in using FDI quality in Liaoning Province, by the comparison to Heilongjiang and Jilin province under the dynamic DEA window analysis.The fifth chapter is the evaluation of direct and indirect efficiency in using FDI quality in cities of Liaoning Province, under the super-efficiency DEA model and the Malmquist index model, including evaluation of the technical efficiency, scale efficiency, technical progress and technical efficiency.The sixth chapter is to give the conclusion and then give the suggestion to improve the quality of the use of FDI in Liaoning.The innovation of this paper:firstly, the research method, using the super-efficiency DEA model, combined with Malmquist index method and window analysis method, is new to evaluate the quality in use of FDI. Secondly, the scope of the research object, based on a detailed analysis of the province, and its municipalities in use of FDI, considering both the horizontal and vertical comparison, making the analysis more comprehensive and concentrated. Thirdly, the angle on the evaluation with both direct and indirect Analysis, that the direct economic benefits and the indirect benefit by using FDI as the development of society.The shortcoming of this paper:firstly, the research period is limit, which is unable to predict the FDI’s future potential development. As the economic crisis of2008was the turning point of the global economic situation, the paper collected the data from2006to2011, through the post evaluation of the use of FDI, to get the suggestion, which is timeliness. Secondly, the inherent limitations of research methods. DEA model is a relative efficiency evaluation method, when the decision unit is changed, the efficiency evaluation results also will be changed, and the absolute value of efficiency reflects the efficiency of decision making units is not the true worth. Also it is a kind of subjective evaluation model, and selection of weight combination of evaluated object is optimal, so the only valid DEA can be compared.