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Analysis On The Dynamic Relationship Between FDI And Industrial Agglomeration Of Manufacturing Industry In Shandong Province

Posted on:2014-02-21Degree:MasterType:Thesis
Country:ChinaCandidate:T L SunFull Text:PDF
GTID:2249330398953068Subject:International Trade
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The deep development of economic globalization could lead a global vision of themultinational company, and the company’s survival and development are based on theefficiency use of the global resources, technology, talented person and the internationalindustry chain, which are no longer limited to the resources in a few countries. Because ofthis, the economy research focuses on the Transnational Corporation’s localization strategy.In order to looking for the development opportunities, less cost and the newest informationof their field but more advanced technology compared with other competitors, bigMultinational companies input their money to other countries. In this way, the activity canbring a lot of foreign capital inflows and the ability of industry innovation and prompt thedevelopment of industrial clusters. Transnational Corporation’s localization strategy isdifferent from country to country, and is different from one area to another area. So thecharacteristics of FDI of different area also different from place to place, and so does theindustrial clusters in different place. Under the complex economy environment, how todeal with threats and how to use the FDI properly are very important. How to adjust capitalflow structure in china and upgrade the industry become critical research subject presently.Shandong as a strong economic province in China’s east coast follows the step ofnational development policy guidance, which actively attracts foreign investment at thevery beginning of the reform and opening and implements various policy measures toencourage multinational companies to invest here. The secondary industry develops rapidlyin nearly30years of Shandong province, and especially manufacturing industry shows atrend of industry cluster. Shandong is not only a big agricultural province, but also aprovince which is good at comprehensive economic area with advanced industrial facilities.Shandong also contributes a large part of revenue to our country. The government ofShandong province is committed to structural transformation of the economy, Greendevelopment and the creativity of science and technology for many years. The government’s effort has paved the way to attract FDI and to create a supporting background.Foreign direct investment plays a decisive role in the development of industrial cluster.Multinational company considers the industrial cluster firstly when comes to the FDI.Based on this, this article concretes the characteristic and structure of FDI in Shandongprovince and at the same time to analyses the industrial cluster in Shandong province,especially the degree of manufacturing industrial agglomeration as well as thedevelopment of manufacturing industry cluster. On the basis of extensive literaturelearning, this paper uses FDI estimation method to summarize the data from the yearbook.In order to establish and analysis the basic data, this paper ignores the negative effects ofthe cluster, and only focus on the advantage of the cluster through static evaluation and thedynamic observation of many years of the FDI and segmented manufacturing industrycluster. Based on the data from2000to2010in Shandong statistical yearbook, this paperfocuses on the relation between the manufacturing agglomeration degree-location entropyand the FDI, which find that there is a significant correlation. At the end, this paper comesup with some suggestions to balance the FDI distribution of western and the eastern city.At the same time this paper gives a consideration on how to use of foreign investmentrationally and how to play the leading role of industry cluster.
Keywords/Search Tags:TNCs, FDI, Shandong Manufacturing Industry, Industrial Clusters, Industrial Agglomeration
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