Study of China’s OFDI Efficiency on RCEP Member Countries-Based on DEA-Malmqiust Index

As RECP (Regional Comprehensive Economic Partnership Agreement) was signed smoothly, China's investment efficiency on RECP member countries has drawn much attention. According to the panel data of China's direct investment in 14 RECP member countries from 2011 to 2019, this essay uses the DEA-Malmquist index model to conduct a comprehensive assessment of investment efficiency along with its changes. The study reveals that the efficiency of China’s investment in other member states generally shows an upward trend, and the investment efficiency of different countries varies. China’s investment efficiency on 11 countries has shown an upward trend while the remaining three countries shows a downward trend. The efficiency of OFDI (Outward Foreign Direct Investment) is affected by the host country’s economic development, market size, the political relationship between China and the host country, economic and trade relations and other factors. Meanwhile, during the assessment period, China's investment efficiency on the 14 RECP member countries shows a fluctuating upward trend (up by 3%). In the past three years, comprehensive technical efficiency has been the main factor restricting the progress of efficiency. To promote the efficient and sustainable development of Chinese investment in RECP member countries, this paper provides relevant suggestions.