From Primary Advantage To Agglomerate Advantage: The Research Of Host Country Dual Advantage In Attracting FDI Of Transnational

In light of the current "Double Concentration" phenomenon of TNC's FDI, this paper proposes the "dual advantages" of host country's FDI attraction, i.e. the primary advantage on the national level and the agglomerate advantage on the sub-national level based on the in-depth analysis regarding the advantage in either respective, and establishes a multi-level and dynamic theoretical analysis framework concerning the advantages of host country's FDI attraction based on the current research.In the past research on host country's FDI attraction elements, traditional research put great emphasis on those on the national level, whereas the latest research gave more focus on the agglomerate economy on the sub-national level. Based on all these researches, this paper aims to integrate these two advantages into a theoretical framework with a comprehensive analysis and evaluation of them respectively and puts forward the dual advantage theory concerning host country's FDI attraction.In the mean time, this paper delves into the heated topic of the agglomerate advantage, indicating that all past researches have been based on the assumption of the homogeneity of agglomerate economy. However, due to the substantially different allocation of resources in various geographic regions, along with their own characteristic formation, agglomerate economies show rather a strong tendency of unhomogeneity, which leads to the unhomogeneous characteristics of their advantages regarding FDI attraction. Therefore, this paper proposes there exists an interactive relationship between the primary advantage and the multi-level agglomerate advantages by dividing the latter one into original agglomerate advantage and late-developing agglomerate advantage.This paper brings up that along with the further development of globalization of world economy and the information technology, the significance of primary advantage is decreasing gradually, being transferred from an obvious advantage to a potential advantage, and is becoming a comparative advantage of host country's FDI...