The Demonstration Analysis Of The Liaoning Location Of FDI Which Is Grounded On Agglomeration Effect

Liaoning Province is China's heavy industry base. It's also habitat of Chinese traditional superiority industry. In recent years, along with Liaoning Province economical development and investment environment improvement, it has attracted more and more foreign capitals. This article pays attention on how to seize the great opportunity of promoting northeast industry base, seek famous transnational enterprise cooperation positively, make full play of foreign capital region agglomeration effect in maximum way and promote competitive ability of Liaoning Province industry.The author has read the massive works made by Chinese and foreign scholars regarding agglomeration effect research results. And also visited and investigated relevant government offices and enterprises as well in order to obtain the first materials regarding the current situation of utilizing foreign capitals in Liaoning Province. Based on this, the author summarizes the current situation and characteristic of foreign capital utilization of Liaoning Province. In the following demonstration analysis, the author first embarks from general situation of Liaoning province, using correlation data between 1986 and 2005, following the international mentality regarding this research area, based on dynamic adjustment model of Leonard K.Cheng and Yum K.Wan: d In Y_it/dt =α(In Y_it*-In Y_it)(0 <α< 1) , makes analysis of FDI agglomeration effect of Liaoning Province. The result is that Liaoning Province using foreign capital has had the agglomeration effect on the whole, that means it reaches a continuance state in utilizing foreign capital. Based on this, the author looks at the industry agglomeration effect of foreign direct investment in microcosmic angle by using the below indexes: scale index-Position entropy, average target-Position Gini's coefficient, and Dynamic target-Industry agglomeration effect index. The author also makes a comparison analysis regarding national related industry and Liaoning regional industry. In the end, the result shows that the tradition superiority manufacturing industry and agriculture can be major industry of attracting foreign direct investment in Liaoning province. At the same time, real estate and social service can be developed into after-potential industry to attract foreign investment by government support and preferential policy since they have been developing very fast in recent years in Liaoning province. But industry like excavation needs a way of improving introduced investment such as high technology FDI etc... In the mean time, the author also makes analysis regarding forming factors of FDI agglomeration effect. And put forward with countermeasures and suggestions regarding future development of utilizing foreign investment in related industries in Liaoning province.