A Comparative Study On The Efficiency Of Utilizing Foreign Capital In Jiangsu And Guangdong

The 19 th National Congress report mentioned that China's economy has shifted from a high-speed growth stage to a high-quality development stage and is in a critical period of changing the development mode,optimizing the economic structure,and transforming the growth momentum.We must insist on quality first and benefit first.This important assertion was further clarified in the 2018 Central Economic Conference as the basic characteristics of China's economic development in the new era,and then it has made major deployments to promote high-quality development.It is of great practical significance and far-reaching historical significance to lead China's economy toward a high-quality development stage.In this context,foreign capital is still indispensable for China's economic development;the use of highquality foreign capital is of particular significance.It can be said that improving the efficiency of the use of foreign capital is the key to the transformation of China's foreign investment from quantity to quality.From the process of reform and opening up in Jiangsu and Guangdong,we can see that both provinces are China's exportoriented economically strong provinces,and the use of foreign capital has a strong driving effect on regional economic development.Improving the quality of foreign capital utilization can promote the optimization of industrial structure,achieve industrial and economic transformation and upgrading,and better play the economic and social benefits of foreign direct investment.Based on this theory,this paper adopts a three-phase DEA model and takes Jiangsu Province and Guangdong Province as examples to empirically analyze the efficiency of foreign capital utilization in the two provinces in order to provide useful experience for the healthy development of foreign investment.The structure of this paper is as follows: The first chapter is the introduction.It introduces the background of the topic,the research significance and the framework of the article.At the same time,it combed the research results of foreign capital utilization efficiency at home and abroad.The second chapter is an overview of related concepts and theories,including an explanation of the principles of the DEA model at that stage.The third chapter focuses on the comparison and analysis of the scale of the use of foreign capital in the two provinces,the proportion of fixed assets investment in the entire society,regional sources,industrial structure and industry distribution.The fourth chapter is the empirical part.Firstly,the DEA method is used to make a preliminary measurement of the efficiency of foreign capital used in Jiangsu and Guangdong,and on the basis of the first stage of DEA,the SFA stochastic frontier regression analysis is used to remove environmental variables and random disturbances.Then use DEA again to calculate the final efficiency of foreign capital utilization.Chapter V presents conclusions and policy recommendations.The results of the study show that,first of all,from the point of view of the utilization efficiency of foreign capital calculated from the first phase of DEA,Jiangsu and Guangdong are leading the country in the use of foreign capital efficiency,and have consistently maintained a high level of foreign investment.However,there is also a certain gap between Jiangsu and Guangdong.After eliminating the interference of environmental factors and random disturbances,the gap between Jiangsu and Guangdong has been somewhat reduced.In addition,as the two provinces actively carry out industrial restructuring and upgrading,compared with the scale efficiency,the pure technological efficiency has been increasing year by year and gradually tends towards 1.Finally,this paper proposes countermeasures and suggestions from the perspective of Jiangsu Province: First,Jiangsu should maintain a modest scale of foreign capital in order to maximize the efficiency of foreign capital.Second,Jiangsu Province should further deepen service sector reform and accelerate the opening of the service industry;optimize the use of foreign capital in the manufacturing industry,and increase the efficiency of foreign investment in the manufacturing industry.Fourth,vigorously promote the construction of the development zone and build a high-tech foreign investment agglomeration.