The Empirical Research Of The Effects Of FDI On Industrial Agglometation

Since the China's reform and opening up, the scale of FDI in China is increasing. In 2009, the amount of foreign investment had became the world's second, fewer than The United States. JiangSu Province, which through its geographical advantage to attract FDI has made tremendous achievements, the amount of the FDI has been ranked first in China for seven consecutive years. The FDI provide funds form the home countries and the international capital markets to make up the funding gap in economic development, as well as bring advanced technology and management philosophy, so the foreign investment in JiangSu province had promoted the development of industrial agglomeration greatly. This study is to make a description of the influence and the differences of FDI on the industrial agglomeration in JiangSu province by make the empirical analysis, and to help the govement to make new strategies for attracting investment and industrial development.First, the article shows us how the FDI influent the industrial agglomeration and points out the problems existing in the development of China's FDI-driven industrial cluster. The theory supports the basis for the later empirical analysis. Secondly, this article describes the quantity,the distribution in different regional,industry and National source of FDI in jiangsu province generally, so we can have a understanding of FDI in JiangSu province. Then the article confirms a guide line of the industry agglomeration, by which account the degree and the change of the industry agglomeration in JiangSu province. Finally, we find a trend that a higher degree of agglomeration of high FDI. Thirdly, the article measures the amount of FDI and concentration degree of JiangSu 27 manufacturing industries. Then establishs econometric models, quantitative test the effects of FDI on industrial agglomeration and its difference between different industries by empirical analysis of panel data. From the analysis, we find that FDI don't have a significant effect in the whole industries's agglomeration, it have different effects in different industry. For the industry which has formed a cluster, FDI and the private economy have a positive effect, and the positive effect of the private economy is greater.At last, the article put forward several suggestions to make full use of the FDI and guide the development of the industry...