An Empirical Study On The Industrial Conglomeration Efforts Of The FDI Of MNCs

With the going of the great course of reform and opening policy, the Chinese economy is undergoing fast and peace development since it entered into WTO. Nowadays the volume of absorbing FDI is increasing and the industry is boarder and the region is wider. With the function of the Chinese economy, the following issues emerged: first, more FDI in the fields as real estate, electric power, communication and transportation and postal and communication but less in the fields such as hygiene and physical education. Second, it is imbalance of FDI among eastern, middle and western areas and the great discrepancy of the increase speed among these areas. This leads to the imbalance effects of industrial agglomeration of the fast and harmonious development of the national economy.The academic circle pays little attention to the industrial agglomeration effect. This paper starts the research on a brief instruction of the meaning and background of the thesis and the research structure and method. Then it gives out a literature review about the industrial agglomeration effort of FDI and the theory of economic growth, thus provides a foundation for the further model. The third chapter establishes a econometric model according to the economic regression test to the total sample and then to three subsamples and gives out the analysis on all the above. The fifth chapter puts out the existing issues and the coming outcomes of the industrial agglomeration of FDI on the basis of the above analysis especially the model. At last it gives out relevant suggestions and measurement on the prerequisite of the safe industry and sustainable development as well as the optimizing of industrial structure and the economic development.