The Research Of The Relation Between FDI And Industrial Agglomeration In Jiangsu Province

Since the 1980s, the scale of FDI in China is increasing. Jiangsu Province, which through its geographical advantage and preferential policies to attract FDI has made tremendous achievements, so that it becomes one of the main districts attracting FDI in China. However, with the accelerated process of economic globalization and the deepening of the opening up policy in China, the factors of location Selection of FDI in Jiangsu Province has changed. The industrial agglomeration has become the key factor. Therefore, the study in the relations between FDI and industrial agglomeration has the important practical significance. It must be more effective to attract FDI and promote the development of local economy.Firstly, this theme sums up the main theory of FDI and industrial agglomeration and explains the mechanism of each other; it shows that FDI and industrial agglomeration have bidirectional influence to each other. All of these support the basis for the later empirical analysis.Secondly, this theme is on the general description of the FDI's whole process and the general characteristics of FDI in Jiangsu Province, and analyzes the reasons of the characteristics of FDI. Then the theme confirms two guide lines of the industry agglomeration, by which account the degree of the industry agglomeration in Jiangsu Province.Thirdly, this theme focuses on the degree of the effect that the phenomenon brings to FDI's local choice based on the fact of the FDI's agglomeration effect in Jiangsu Province. Then this theme has a demonstration of cause and effect test of Jiangsu's FDI and industry agglomeration form the actual data of Jiangsu Province. It has showed that Jiangsu's FDI and industry agglomeration existed bidirectional cause and effect relation in fact. Then the text makes regression analysis for Jiangsu's FDI inflows data. From the mathematical model, it has been concluded that the major factor for FDI absorption in Jiangsu Province today has been changed from preferential policies to the degree of local industrial agglomeration.At last, based on the empirical conclusion, the theme put forward several suggestions to make full use of the FDI in Jiangsu Province.