Research On The Influence Of FDI On The China's Auto Industrial Clusters

With a wide industry chain and strong driving force of economy, the auto industry has become a pillar industry of our national economy. With the growing development of auto industry in China, the trend of industrial cluster has been increasing. At present, there are six auto industrial clusters including the Northeast auto industrial cluster, the Yangtze River Delta auto industrial cluster, the Bohai Sea auto industrial cluster, the Pearl River Delta auto industrial cluster and the Southwest auto industrial cluster which generally show the overall situation of auto industry in China. China has attracted a large deal of FDI with its continual carrying out of reform and opening up policy and a market of great potential. Major multinational auto giants in the world have invested and established factories in China, widely participating in those auto clusters. What will be discussed is that whether the FDI has an impact on the auto industrial clusters during this process.FDI's impact on the auto industrial clusters has been analyzed in this paper by the method of theoretical analysis and empirical analysis. First the paper has made a summary of the related study in and out of China, analyzing the process of FDI entering auto industry in our country and the status quo and its characters. Then the paper has analyzed the development level of industrial clusters in our country by cluster analysis and introduced the development scale of auto industrial clusters in China with rich data. Also, the paper has pointed out factors affecting auto industrial clusters and focused on the ways of FDI affecting auto industrial clusters in China which are improving the market concentration among auto industrial clusters, driving up the technical upgrade, promoting scale economy, expanding and improving the auto chain and optimizing structures of auto products, etc. Based on theoretical analysis, the paper has quantized the development level by combining indexes of market concentration, location quotient and total factor productivity. Using regression analysis, the paper has made a practical analysis on FDI's impact on China's auto industrial clusters. The result shows that FDI, to a certain degree, has a positive impact on the market concentration and productivity of auto industrial clusters in our country. The more FDI is attracted by auto industrial clusters, the higher development level the clusters have.