Xinjiang FDI Utilization Quality Evaluation And Promotion Research

With the improvement of the economic reforming and open-up policy, under the circumstance of economic globalization, large amount of foreign-owned enterprises have come to China. It has facilitated the national economy, created massive employment opportunities, expanded the international trade and improved China’s industrial structure. In 13 th September 2013, the president Xi Jinpin proposed a ‘new silk road economic belt’ and ‘marine silk road’ in the 12 st century strategic vision. As a result of the core area of the ‘new silk road economic belt’, Xin Jiang has performed rapid economy growth. In recent years, the development of the attraction to FDI in Xinjiang was tremendous. Since the scale of foreign capital became larger, the local economy has been positively impacted. However, the FDI also have negatively aspects. Hence, the attraction to the foreign enterprises is not only for the quantity and scale but the government needs to set higher requirements about the quality for the foreign enterprises. With the constant improvement of the western development policy, the scale of attraction of FDI to Xinjiang has been gradually expanding, involved more fields, more aspects and become all-dimensional pattern.The main content in this paper, chapter one: introduction, describing the research background and significance, literature review, methodology, and limitations; chapter two: the analysis of the development of using FDI in Xinjiang, holistic FDI circumstance, and the problems during this period. Mainly the historical data has been utilized, types of the data including project scale, investment region distribution, industry distribution, the success rate of the investment, the capital source, and the investment method, By adopting the combination of graph and data in a way that is introduced. In the chapter three, four, and five, the author firstly gives analysis of the contribution of the FDI to the employment growth, the contribution to the economic growth, and the contribution to the growth of the export. Then, the author established mathematical model for the three indexes in order to analyses the overflow effect of each indicator to Xinjiang economy. In the chapter six, the potential index will be given and comparing to Shanghai, Guangdong, Xianxi, Hubei and Henan. The result will show the limitations. In the last chapter, the recommendation will be given for the improvement when using the FDI.The quantitative and qualitative analysis have been utilized to establish the contribution index and the potential index in order to analyses the quality of the capital source, the contribution to the employment growth, and the contribution to the economy. The time series data, Cointergration method of measurement, and the result have been used to show that there is a crowding-out effect for employment but little effect for GDP growth and export. According to the potential index, the attraction to FDI in Xinjiang is far more behind Shanghai, Guangdong, Xianxi and Hubei and the proportion of higher educated population is the lowest among the 5 areas. The other indexes also are lagging behind. According to other researchers, utilization of foreign capital enterprises in Xinjiang does not effectively promote the economic growth because of the quality of FDI is low. Therefore, it is necessary to improve the investment circumstance and the policy guidance for increasing the potentiality to attract FDI. Moreover, it is vital to optimize the talent structure, improving the localization of the foreign enterprises management level, and accelerating the development of foreign trade to increase the quality of using FDI, promote the upgrading of industrial structure and follow the way of sustainable development.