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A Study Of Foreign Direct Investment's Impacts On Regional Agglomeration Of Manufacturing Industry In China

Posted on:2006-01-31Degree:MasterType:Thesis
Country:ChinaCandidate:X WangFull Text:PDF
GTID:2179360182955104Subject:International Trade
Abstract/Summary:PDF Full Text Request
With the rapid advance of the tide of economic globalization in recent years, economic activities present a new layout appearance in space. Production factors present a new concentration phenomenon in space (the centralized trend of economic activities) while economic decentralized phenomenon occurs. We can say that the decentralized and centralized trend on the background of economic globalization presents the two extreme ends of economic development and has great impacts on the development of each nation and its inner regions.Under the economic globalization, the economic development of every area is threatened by other areas in the world. To promote the agglomeration of industry is very useful for our nation to set up more efficient industry arrangement. It has great meaning to China which is one of the countries absorbs most foreign capitals to research on the relationship between foreign direct investment and industry agglomeration.This text analyzes the situation of foreign direct investment in China and its historical development and shows the accurate number of foreign direct investment with its historical change throughout massive data collection. The text also analyzes the regional industrial agglomeration of manufacturing industries. According to the calculation of industry concentration ratio, Gini coefficient and Herfindahl Index in 15 manufacturing industries, we have a clear understanding on the situation of our country's manufacturing industrial agglomeration. We continue to study the history of industrial agglomeration of manufacturing industries in our country besides that. We collect the Gini coefficient in the year of 1980, 1985 and 1990 of more than 20 manufacturing industries to show its historical evolution of industrial agglomeration. After having a clear picture of foreign direct investment and industrial agglomeration of manufacturing industry we try to find the relationship and interacting mechanism which we don't know very well between them. At last, we make quantitative analysis with using mathematical model.The result indicates that there exists a tight connection between foreign direct investment and regional industrial agglomeration of manufacturing industries. With the entry of foreign direct investment, the industry concentration ratio of manufacturing industry of our country is greatly strengthened. Especially since the1990s, as the remarkable quantity increasing of the foreign direct investment in our country, the speed of industrial agglomeration of manufacturing industry has been obviously accelerated too. Certainly, with the development of industrial agglomeration, it can absorb more foreign direct investments too. This characteristic is very obvious in the eastern region in our country. But it also indicates that foreign direct investment is no longer the most important factor to promote the industrial agglomeration of manufacturing industries in our country through mathematical model. Although foreign direct investment still plays a remarkable role to the industrial agglomeration, the impact of other factors is more obvious.Finally, this text puts forward related recommendations and suggestions on regional policy to the government on the basis of close relationship between foreign direct investment and industrial agglomeration.
Keywords/Search Tags:Foreign direct investment, Manufacturing industry, Industrial agglomeration
PDF Full Text Request
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