Research On The Efficiency Of China's Direct Investment In SCO Countries

After more than ten years of development,the Shanghai Cooperation Organization(SCO)has gradually turned to cooperation in many fields such as economics,humanities,and politics.The proposal of the "Belt and Road" has greatly promoted China's investment in the countries along the route.The Shanghai Cooperation Organization countries are mainly distributed in the Silk The road economic belt is a key link in the construction of the “Belt and Road”.In recent years,China 's direct investment in the SCO countries has increased rapidly,and the investment has shown a good trend.The investment efficiency has attracted much attention.In this context,this paper takes China's direct investment efficiency in the Shanghai Cooperation Organization country as a research object,measures investment efficiency,examines the influencing factors of investment efficiency,and comparatively analyzes the level of China's direct investment efficiency in the Shanghai Cooperation Organization country.First,based on the panel data of China 's direct investment in the Shanghai Cooperation Organization from 2009 to 2018,this paper incorporates economic,political,cultural and legal related indicators that affect the efficiency of direct investment into the stochastic frontier model and efficiency loss model to empirically analyze the impact of investment efficiency factor.The study found that four variables:China's GDP,GDP of the Shanghai Cooperation Organization,development of high-tech industries,and shared boundaries with China are positively correlated with investment efficiency,while geographical distance is negatively correlated with direct investment efficiency.In the efficiency loss model,the integrity,taxation,investment freedom and political stability of the Shanghai Cooperation Organization government have a significant promotion effect on direct investment efficiency,while the improvement of property rights,the rule of law,commercial freedom and currency freedom have The improvement is not obvious.Secondly,a comparative analysis of the efficiency of China 's direct investment in SCO countries reveals that China 's direct investment in SCO countries has low efficiency and large investment space;specifically,within the SCO,direct investment in member countries has the highest efficiency Dialogue partner countries are second,with observer countries being the lowest;there are obvious country-specific characteristics.Finally,based on the conclusions of the study,this article gives policy recommendations to improve theefficiency of direct investment in the Shanghai Cooperation Organization from the national and enterprise levels.