The Research On Relationship Between FDI Location Choice And Industrial Cluster

As the economy becomes a truly global affair, nowadays more and more corporations are seeking the optimal locations to investment in global range. While this does not mean that international production are distributed evenly over the world. On the contrary, the global flow of foreign direct investment (FDI) of multinational corporations (MNCs) tends to clustering. This kind of industrial cluster led by FDI can enhance the competitive advantages of related companies and have significant positive impact on the development of regional industries and economy. So more and more MNCs become the participants of cluster, and more and more local governments become promoters of the cluster. Academe fields and business fields and politics fields all pay more attention to industrial cluster. Each region competes for attracting FDI and merges cluster strategy into FDI policies, aiming at capturing economy activity of high-attached values, so cluster has becoming an important power of global competition. The third policy promoting FDI, which combines with cluster strategy, is becoming the leading of many countries and regions. FDI have combined global dimension with regional industrial cluster, industrial cluster is not only confined to the concept that local enterprises cluster in some region at home. As the economy becomes a truly global affair, cluster gradually shows global character. This paper applies study approach combining theoretical analysis and empirical analysis and pays more attention to the cluster's location effects on Chinese FDI, aiming to giving effective FDI policy suggestion for Chinese future.This article includes four parts: introduction, theoretical analysis, and case study and policy suggestion. Introduction describes the developments and changes of key factor that affect FDI location choice on China, and discusses research background and objective and trains of thoughts and initiatives, also defines some interrelated concepts. The second part states the relationship between FDI location choice and industrial cluster from the angle of theory. Firstly, this part reviews and comments on FDI location choice theory and industrial cluster theory at home and aboard,...