Research On FDI Quality Of China’s High Technology Industry

Utilization of foreign capital is an important part of Chinese reform and opening up, as well as the inevitable result of economic globalization. With the economic developing rapidly and the degree of reform opening up continually deepen, the level of utilization of foreign capital reached a new height. FDI not only meet the financial needs of our country, raise taxes and employment levels, but also transfer the advanced technology and management experience to accelerate economic development. It provides a new opportunity for FDI that several opinions of the State Council on further improving the utilization of foreign investment and12th five-year plan about FDI. It optimizes the structure of foreign investment and leads foreign investment to high-end manufacturing and high-tech industry.As an emerging industry, high-tech industry plays an important role in the transformation of economic growth and industry upgrading. High-tech industry can not only enhance our technological level and innovation capability, but also drive the development of other industries. Foreign investment in high-tech industries improves the industry’s technological level and production efficiency at the moment when our country faces with transformation of economic growth and industry upgrading. Our high-tech industry development has a close relationship with foreign direct investment. The output value of foreign enterprises is up to about50percent of the whole industry. Foreign investment can not only solve the problem of shortage of capital, but also provide advanced technology and scientific management experience, which greatly boosted the development of high-tech industry.Many factors affect the effect of FDI on the host country’s economic development and technological level. The effect of FDI is limited in the case that domestic environment and facilities are not mature. We should encourage foreign investment to high-tech industry for the promotion of high-tech industry development and optimizing industry structure. At the same time, we should hard improve the level of utilization of foreign capital for the development of high-tech industry. Therefore, the study on FDI quality of high-tech industry has an important significance to use of foreign investment better and improve the efficiency of utilization of foreign capital.This paper major includes five parts:The first part is the introductory part. It gives out the significance and the background of research papers, the overview of international and domestic research and then further elaborated on this research, innovative points and weaknesses. The second part is the analysis of related theories and concepts. It has laid a good foundation for research by expounding the related theories of utilization of foreign capital and defining the concepts about high-tech industry and FDI quality on the basis of previous studies. The third part analyzes the present situation of China’s high-tech industry development and the FDI quality. It summarizes the foreign capital of our high-tech industry with a combination of quantitative and qualitative analysis methods. The fourth part measures FDI quality of high-tech industry. This part constructs the comprehensive evaluation model of FDI quality with data envelopment analysis. Part V is to provide the proposals for improving FDI quality of high-tech industry according to the fourth part. Put forward the reasonable proposals from technical progress, construction of evaluation system, coordination of other professions and attracting foreign investment.The innovation of this paper is to use development potential norm for measuring the FDI quality of high-tech industry. It focuses on analysis of the use of foreign capital for high-tech industries to enhance the development potential according to the new fixed-asset investment and technical level and other indicators. At the same time, this paper uses data envelopment analysis to measure FDI quality of China’s high-tech industry from the perspective of the amount of foreign investment. But there are also some deficiencies. Because of the limited of the data collection, I didn’t consider the improvement of the whole industry technological level due to foreign technology spillovers. It also causes the problem that I only choose the data from2008to2011to measure FDI quality of various professions in high-tech industry.