| Industrial agglomeration is a common phenomenon in world economy. Economists have given reasonable explanations for this phenomenon. Since the reform and opening up, foreign direct investment (FDI) inflow into China. Guangdong Province effectively attracts more foreign direct investment for its advantage location and favorable police. The increasing FDI of Guangdong Province has a great impact on the industrial agglomeration. From this background, the article pays attention to the research of the relationship between industrial agglomeration and economic growth, the reason of industrial agglomeration, the approach FDI influence industrial agglomeration. Based upon the situation of Guangdong Province, the article gives an empirical analysis of the manufacturing sector as an example. By calculating the location Gini coefficient and the location entropy as degree of agglomeration, the article uses the correlation analysis and Granger causality test to analysis how FDI effect industrial agglomeration. In result, there is a significant positive correlation between industrial agglomerations of manufacturing sector and FDI. Eleven industries have significant industrial agglomeration in twenty eight industries after industry segmentation. Three industries of eleven, FDI is the Granger cause of industrial agglomeration, while four industries of eleven industrial agglomerations is the Granger cause of FDI. The article gives reasonable explanations from industrial development stage. |
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