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The Influence of FDI on Energy Efficiency of China: An Empirical Analysis Based on DEA Method

Based the panel data of China from 1997 to 2008, this paper computes the regional total-factor energy efficiency (TFEE) in China by using the method of the data envelopment analysis (DEA) and then discusses the influence of regional FDI on local energy efficiency. The empirical results show that, FDI improved China's average level of energy utilization efficiency by technical and structural effect channels; the FDI in the eastern region and the central region improved local energy efficiency, however, western area FDI reduced the energy efficiency.