A Research On Interactive Relationship Between FDI And Industrial Cluster In Economic And Technological Development Zones

The recent years have witnessed the trend of international industry transition into our country, which will last for a long time with the ever-deepening globalization and international labor-division & labor-cooperation, especially with the ever-increasing Chinese economy.The Economic and Technological Development Zones (ETDZs ) in China have been important bases for introduction of Foreign Direct Investment (FDI) and development of new-high technology industries as well, where the foreign -funded companies are clustering. With an object of our national-level ETDZs, the paper carries out a research on the interaction of the industrial clusters and FDI in ETDZs.The first two parts of the paper comes out a theoretical analysis on the interactive mechanism of industrial clusters and FDI in the ETDZs. Firstly the author illustrates the structure of the industrial clusters in ETDZs, creating a model of industrial clusters referring to the Diamond Model from Porter M.E.. This is followed by an analysis on the interactive mechanism of the industrial clusters and FDI in ETDZs. Industrial clusters have prominent impacts on the introduction of FDI while the FDI by MNCs can in turn result in the development of industrial cluster in ETDZs. As a result of the interactive mechanism of industrial clusters and FDI in the ETDZs above mentioned, ETDZs witnesses a fast development in its economy.Then the paper goes to the empirical analysis on the interactive mechanism.