Foreword

There is an increasing amount of foreign investment in China since the reform and opening up, especially in the eastern region.Foreign investment has accelerated regional economic development and made a significant contribution on China's regional economic development.Current researches mainly focus on the influences of FDI on macro-economy and industry.Scholars have made theoretical and empirical researches in such fields as differences between various countries and regions, different foreign capital sources and specific economic development stages of host countries, while not too much concerning the influence of FDI on macro-economy and industry in Beijing, esp.from the perspective of industry layout.Thus research on macroeconomic effects and industrial efficiency of foreign enterprises in Beijing has a very important theoretical and practical significance.

This paper mainly analyzes thehistory and current situation of industry layout of Foreign Direct Investment（FDI）in Beijing based on theories of international economics and industrial economics.Grey Relational Analysis（GRA）is applied to analyze the correlation of foreign investment of different industries and Beijing macroeconomic aggregates, and the regression model is adopted to study the contribution of foreign investors in Beijing macroeconomic degree, and Data Envelopment Analysis（DEA）is used to evaluate the industry efficiency of the foreign-funded enterprises in Beijing.And the following findings have been achieved through this research.

（1）Industrial layout of foreign investment in Beijing is rudimentarily reasonable.Foreign investment structure of three major industries coincides with that of Beijing GDP from the perspective of industrial structure of foreign investment in Beijing.The utilization of foreign investment in key industries coincides with that of the development of new industries in Beijing from the perspective of industrial layout of foreign investment in Beijing.This industrial layout is in accordance with Beijing functional orientation and urban development goals from the perspective of foreign investment location in Beijing.

（2）Utilization performance of foreign investment in Beijing is asymmetric with its location advantages.Beijing has been in a significantly backward state in the four municipalities and ranks behind Tianjin, Shanghai and Chongqing in both overall growth trend and performance indicators of foreign investment utilization.Especially in the tertiary industry, even with excellent human resources, material resources and geographical conditions, FDI Performance Index in Beijing still ranks the bottom among the four municipalities.

（3）Differences between stages for foreign investment in Beijing economic development exist.Foreign investment has a relatively great impact on Beijing economy in 1988—1998, while in 1999—2008, foreign investment impact on Beijing macro-economy decreased.

（4）Foreign investment promotes macroeconomic developments in Beijing in a certain degree, but negative effects should not be ignored.Foreign investment promotes economic growth, fixed asset investment and international trade.However“Crowding-out effect”still exists and foreign investment has a negative impact on technological progress and industrial upgrading.

（5）More DEA invalid in Beijing foreign investment industry appeared while foreign-invested enterprises achieved maximum profits.Through DEA analysis, only 9 in the 22 industries analyzed are DEA efficient, while the output indexes showed the industry profit targets of foreign-funded enterprises in Beijing are closed to the optimum.

（6）Utilization efficiency of the tertiary industry foreign investment is invalid and the introduction of foreign investment is in the industry decreasing returns to scale stage.DEA analysis indicated that foreign investment scale efficiency value in the introduction of the tertiary industry is very low and part of the foreign investment is invalid.

（7）Big gap between advantageous industries in domestic and foreign investment exists.Some foreign-funded enterprises in Beijing have obvious advantages in certain industries such as those with a high degree of market development or highly competitive industries.Domestic enterprises have advantages in monopoly and protection industries.

（8）Beijing's functional orientation determined the development of its leading industries.The capital functional orientation changes with that of leading industries in Beijing from the amendment process of Beijing Urban Master Planning.

Based on the above conclusions and the status quo of foreign investment utilization in Beijing, the following policy recommendations are proposed in this the paper：

（1）A pragmatic and efficient urban marketing system should be established to enhance the utilization performance of foreign investment in Beijing.

（2）Periodical effects of foreign investment should be paid close attention and investment ideas be adjusted timely.

（3）The efficiency of foreign-funded enterprises in Beijing should be period-i cally assessed so as to avoid foreign investment redundancy.

（4）Administration of Foreign Investment in Beijing should be strengthened to weaken the“negative effect”of foreign investment.

（5）The function of foreign investment should be clearly stated so as to achieve the“win-win”obj ectives of foreign investment and city development in Beijing.

Key Words:Foreign Direct Investment（FDI）, Industry Layout, Data Envelopment Analysis（DEA）, Industry Efficiency