The Research Of How Fdi Inflows Impact On The Upgrading Of Industrial Clusters In Zhejiang Province

The rapid development of economic globalization and the industrial clusters in the economy is playing an increasingly important role. In the 30 years from 1980s to now, while "the source" industry clusters in Zhejiang Province has made great progress, the problems, such as the low-level of industry structure, incomplete of market mechanism, the waste of resources, shortage of talent, the slow development of technology and so on, make the pressure of the clusters upgrading growing. In the opinion of author, Foreign Direct Investment (FDI) in China plays a major role in the upgrading of industrial clusters. The rational use of FDI can effectively promote the upgrading of industrial clusters in Zhejiang. This paper focuses on how to effectively attract FDI and how to promote the upgrading of the industrial clusters in Zhejiang.This paper theoretical analyze the impact factors of the upgrading of the industrial clusters and the transmission mechanism of FDI impact on the upgrading of the industrial clusters, defines the concept of industrial clusters, combines the characteristics of industrial clusters. In the content, this paper builds the framework of mechanism to the upgrading of industrial clusters based on previous research; analyze the various elements of the upgrading of industrial clusters combined with proposed countermeasures. Specifically, this article theoretically studies the four power sources of the upgrading of the industrial clusters, including resources, innovation, learning and networking start. Research results show that innovation, including technological innovation and organizational innovation is the fundamental driving force to upgrade the industrial clusters. Then the paper discusses the transmission mechanism of FDI impact on the upgrading of the industrial clusters by four industry cluster factors, explain that FDI inflows play an important role in the upgrading of industrial clusters. Finally, the paper conduct an empirical study on industrial clusters in Zhejiang province, results show that FDI inflows have a positive effect on upgrading of industrial clusters in Zhejiang Province through human resources, technology spillovers, knowledge spillovers and the evolution of the network, and ultimately promote the development of the economy in Zhejiang Province.This paper use the FDI and Industrial Cluster as the research object, involve in foreign direct investment theory, industrial cluster theory, the regional network theory and other disciplines theory, combine the theory and empirical research methods with mathematical analysis, systematically study the interaction between Foreign Direct Investment and Industrial Cluster factors. This article is divided into six parts; the profiles of its structure and content are as follows:The first part is introduction. This section introduces the research background of this thesis, the research goal and a variety of methods used in the study.The second part is the literature review and theoretical research. This part is the review of other scholars'research on the relationship between FDI and the upgrading of industrial clusters and the author's concepts of the industry clusters, the upgrading of industry clusters and so on. First, the author defines industrial clusters, the upgrading of industry clusters on the basis of studies of the domestic and foreign scholars; Second, the authors raises the affecting factors of the industrial clusters on the base of previous studies; Finally, the author study the mechanism how FDI impact on the upgrading of industrial clusters.The third part is an overview of the current situation of the industrial clusters in Zhejiang. The paper mainly analyzing from the characteristics of the industrial clusters in Zhejiang Province, studying a large amount of dates and charts, intuitively reflects the present situation of the industrial clusters in Zhejiang Province.The fourth part conducting an empirical study to the upgrading of industrial clusters in Zhejiang province under the Cobb-Douglas production function and the total factor productivity function, prove that the FDI inflows has a positive role in the upgrading of industrial clusters in Zhejiang.By the fifth part put forward some recommendations to promote industrial clusters in Zhejiang Province to upgrade on the base of the problems which exist in the empirical analysis of industrial clusters in Zhejiang.The six part is a conclusion on the basis of the summary of the five parts, and propose the strategy of the upgrading of Industrial Cluster.