Study On The Relationship Between The Fdi And Industrial Agglomeration

In this paper, based on China’s four municipalities, for example, studied therelationship between FDI and industrial agglomeration. Article is divided into two partsto be studied: first, studies of industrial agglomeration effects of the location choice ofFDI; second, analyze the impact of FDI on industrial clustering effect, and on this basis,the FDI to promote industrial agglomeration The process will be subject to otherexternal factors (such as the impact of the financial environment), this assumption, andbe confirmed by a simple theory and empirical.The article first introduces the background and the writing of this studysignificance, then sort out the relevant literature, pointed out a number of shortcomingsand deficiencies of the previous. The third chapter is the analysis of industrialagglomeration and foreign direct investment in the mechanism of interactionanalysis. The first is the analysis of industrial agglomeration is how to attract foreigndirect investment through its own advantage, and afterwards from analysis of theinfluence of other factors to attract foreign investment, and then discussed themechanism analysis of FDI to promote the role of industrial agglomeration, and througha simple mathematical model to be proved on the basis of the FDI to promote industrialagglomeration of the internal mechanism may be the impact of the financialenvironment; Chapter IV of the FDI inflows of China’s four municipalities directlyunder the Central Government and agglomeration statuscalculated and compared in thecalculation of industrial agglomeration status, the converter mode abandon the practiceof the past, only consider a single industry, but will be associated industries combined tocalculate the location quotient index and agglomeration index; The fifth chapter use ofmeasurement methods, select the data of2003-2010, the first empirical analysis ofindustrial agglomeration of FDI location choice, followed by positivism of FDI onindustrial clustering, the results show that FDI on industrial cluster is the impact variousregions of FDI on the contribution of industrial agglomeration is different, according toChapter III of FDI can lead to industrial agglomeration, this intermediate process issubject to the financial environment, the role of imaginary to build a panel regressionmodel, testing financial environment Finally, the stationary test, cointegration test andGranger test a causal relationship between FDI, financial, environmental and industrialagglomeration on the impact of industrial agglomeration.The end of the article is the conclusion of this study, the paper concludes that: First, FDI location choice by the cost of labor, industry concentration, the impact of theeconomic level, traffic conditions, and financial development, and other factors, but themost important sustainable factor is industry cluster; Second, FDI can lead to industrialagglomeration, but the contribution of different parts of the FDI inflows of industrialagglomeration is different, the differences of the financial environment is one of theimpact of FDI to promote industrial agglomeration. Finally, it is the conclusions of thisarticle, and then the policies and proposals on this basis.