Research Of Effects Of FDI On Shan Xi Industrial Cluster

Shanxi province is rich in natural resources and mineral resources,market potential is very great, lower labor cost, good industrial base,especially technology, equipment manufacturing, energy and chemicalindustry, fruit industry, agriculture and animal husbandry, tourismindustry has obvious advantages, the use of foreign capital and foreigntrade, regional cooperation is growing rapidly, the world’s top500enterprises have more than50in the investment, foreign directinvestment has become the important factor to promote economic growthin Shanxi Province, Shanxi province has become an important provincesin the country of the utilization of foreign capital. Foreign directinvestment can promote the formation and evolution of regional industrialagglomeration, the industrial agglomeration, less factors of foreign directinvestment in the concern for people less alone, study on the effect offoreign direct investment on the industrial agglomeration in westernprovinces, on the impact of industrial agglomeration in Shanxi provinceconcern is not enough. Under this background, this paper studies effectsof FDI on the industrial agglomeration in Shanxi province.This paper introduces the research background and significance ofwriting this paper, and then reviews the relevant literature, and points outsome deficiencies and shortcomings of previous studies. The third chapteranalyzes the current situation of FDI in Shanxi province and industry agglomeration from the first FDI scale, industry distribution, origincountry distribution, investment in the regional distribution of FDI inShanxi Province, then using regional entropy index from the industrialagglomeration, industry type distribution advantage of industrialagglomeration in Shanxi Province, the fourth chapter with the aid ofassociation testing and Grainger causality analysis of FDI in Shanxiprovince and the relationship between industrial agglomeration, analysison the effect of FDI on industrial agglomeration in Shanxi province usingthe panel data and Econometrics model.Through this analysis we found that the two variables FDI andlocation entropy and the dependent variables have good linearrelationship, finally from the open up new investment channels, wideinvestment ideas, optimize the investment structure, speeding up regionaldivision, optimize the allocation of resources, propose policies andsuggestions related to the4aspects of the establishment of a reasonabletalent mechanism.