| The automotive industry is the most important industry of ChangChun City, it produced 69.4 percent of the Industrial Gross Domestic Product of ChangChun, furthermore, it associates with the metallurgic, steel, mechanical, electronical, rubber, petrochemical, plastic, glass, chemical, textile indutry, and so on, plays a vital role in ChangChun's economic domain. The automotive industry is a mature industry, a captical-depended and technique-depended industry. Foreign Direct Investment (FDI) of automotive multinational can exactly bring ChangChun automotive industry with abundant capital, advanced technique and management, so we should try our best to absorb as much FDI as we could.What do multinationals consider before they decide the location-choice of the FDI? Does ChangChun have enough attraction to absorb FDI? What should we do to make ChangChun more attractive to FDI? These problems are really important, if we solve them, we can find a way to strengthen the weakness of ChangChun automotive industry in FDI-absorbing. It has been proved both theoretically and practically that industry cluster is an effective way to enhance the competition and attraction of automotve industry in FDI-absorbing. The problem is, what's the relationship between industry cluster and FDI? What does industry cluster portray in FDI's location choice process? That's what this article tried to find out.This article researched how the automotive industry cluster effects the location-choice of FDI, both from theoretical and empirical research.In the theoretical research, we discussed the social network of automotive industry cluster, and pointed out that the special trait of automotive industry makes the social network of cluster even much stronger, then, based on this network we research the effects of automotive industrial cluster on the location choice of multinational'FDI from the three aspects below:(1) The effects of knowledge overflow on location choice of FDI in automotive industry cluster.(2) The effects of cost of trade on location choice of FDI in automotive industry cluster.(3) The effects of external scale and scope economics on location choice of FDI in automotive industry cluster.In the empirical research, firstly, we analysed the condition of automotive industry cluster and the distribution of multinationals in ChangChun, then we found out the relationship between the automotive industry cluster in ChangChun and the location choice of multinational FDI through the comparison of ChangChun with other 27 cities, such as ShangHai and GuangZhou. The sofeware we used is SPSS12.0.In Chapter One we introduced the background and the meaning of this article, defined the industry cluster and the location choice of FDI, and pointed out the research route.Chapter Two is the summarization of present theories on industry cluster, FDI location choice, and those which linked industry cluster with FDI location choice.Chapter Three analysed how industry cluster influences the location choice of multinational FDI. We researched the social network of industry cluster, and the unique trait of automotive industry such as the complexity of it's industrial relationship, through this we found that these traits made the network of automotive industry cluster more powerful than common one. Based on this powerful network, we researched how industry cluster influences the location choice of multinational FDI. Our conclusion is that in automotive industry cluster, the network is much more powerful, which brings the companies of the cluster advantages, and makes the cluster more attractive to multinational FDI.In Chapter Four, we analysed the condition of automotive industry cluster and the distribution of multinationals in ChangChun, then through the comparison of ChangChun with other 27 cities, we found out that the most important factors in FDI-absorbing are the level of agglomeration, GDP, the level of open, and the scale of automotive industry. That's why ChangChun absorbed so much FDI while it's infrastructure, favorable policies, and business services were at a comparative low level. Finally, we did a principal component analysis, and divided all the factors into external environment factor, industry cluster and scale factor, and business service factor.Chapter Five are propositions and sum-up of the article. We pointed out the weaknesses of the automotive industry cluster of ChangChun, and gave our propositions contrapose the weaknesses. The propositions are: make the factors of cluster more integrated and better; encourage people to innovate; reinforce the infrastructure; enhance the business services. At the end, we summarised the article and gave our expectation. |