Evaluation of China's OFDI Efficiency in Key Countries along "the Belt and Road" Based on DEA Model and Malmquist Index

Jianuo Jiang

doi:10.54691/bcpbm.v19i.825

Authors

Jianuo Jiang

DOI:

https://doi.org/10.54691/bcpbm.v19i.825

Keywords:

The Belt and Road, OFDI efficiency, DEA, Malmquist index

Abstract

With the continuous promotion and development of "the Belt and Road" construction, the economic cooperation and exchanges between China and the countries along "the Belt and Road" have been gradually deepened, and outward foreign direct investment (OFDI) is one of the important channels of economic exchanges between China and other countries. Therefore, the efficiency of outward investment is also getting more and more attention from all walks of life. Based on the panel data of China's direct investment in 26 key countries along "the Belt and Road" from 2014 to 2020, this paper uses DEA model and Malmquist index to conduct a comprehensive analysis and evaluation of China's OFDI efficiency. From the results of the DEA model, China's OFDI efficiency to key countries along "the Belt and Road" is low to medium, and the country differences in investment efficiency are mainly caused by the low scale efficiency (SE). From the results of the Malmquist index, China's investment in key countries along " the Belt and Road" in 2014-2020 is on a declining trend, and the investment efficiency will decrease significantly in 2019-2020 due to the impact of the COVID-19 pandemic. Therefore, we shall further improve the scale efficiency of OFDI, strive to develop advanced technology, encourage innovation, improve the technical progress index, optimize the choice of regional investment, and stimulate its vitality.

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