The Empirical Research Of The Effects Of FDI On Industrial Agglomeration

Shandong Province, locating in the east coast of China, with rich human resources and location advantage for attracting foreign direct investment (FDI), gathers a large amount of FDI. The entrance of FDI increases the industrial competitiveness of this region to some extent, and develops its the overall economy and the ability of sustainable development. Since 1990s, industrial agglomeration has been an important feature of regional industry development. And it makes contributions to the regional development. With the burst of FDI, the industrial agglomeration in Shandong Province, especially the manufacturing industry agglomeration, makes rapid development. Under this background, the effects of FDI on industrial agglomeration and the relationship between the two in Shandong Province was started to be focus on. It is widely accepted that FDI makes great contribution to the development of industrial agglomeration in Shandong Province.In order to make a description of the infuluence of FDI on the industrial agglomeration in Shandong Province, the followings are done:At first, beginning with the analysis on the features of FDI and industrial agglomeration in Shandong province, discuss the effects of FDI on industrial agglomeration and the relationship between the two by related mechanisms. Then create the relationship model of the effects of FDI on manufacturing industry agglomeration, and make a regression analysis on it, to do the empirical research on the effects of FDI on industrial agglomeration in Shandong Province. At last, on the basis of the result of empirical research, try to find out the policy basis of the strategies to attract investments, industrial distribution, and guide for industry development of Shandong government.