Abstract: Excessive investment has led to a decline in the efficiency of resource use. For the analysis of the country as a whole always ignores the structural problems of unbalanced regional development, in this paper we choose five special economic zones as empirical objects, and we decompose efficiency of investment from two aspects which include capital intensity and total factor productivity’s changing. In the end we test and verify the relationship between these factors, and the result shows is that: (1) Intensive investments decrease the efficiency of investment in a short period, while TFP is increasing by institutional bonus, so the comprehensive investment efficiency is increasing totally. (2) In different development scenarios, the evolution characteristics of investment efficiency are also different, so we should not negate the positive significance of investment. (3) The relationship between TFP’s changing and capital intensity’s changing reflected as an inverted U-shaped curve in the whole country, but may be reflected as a U-shaped curve at the regional level. (4) Sustained economic growth depends on the increas of TFP level, so it is essential to raise the level of technological innovation by means of deepening reform while ensuring economic efficiency.
Keywords: Investment Efficiency, Total Factor Productivity, Capital Intensity, Institution Innovation, Special Economic Zones(SEZ)
source:Finance & Trade Economics ,No3,2014