The Research On The Cluster Overseas Direct Investment Of Private Enterprisesin Zhejiang Province

With the acceleration of globalization, and the growing linkages between economies, more and more companies began investing overseas to participant in economic globalization. Companies in China are mainly private enterprises, which are difficult to compete with large companies in terms of capital and technology. Overseas investment would be very difficult if they invest overseas on their own. Cluster going out can make up the shortfall of small and medium-sized private enterprises which.exerting the advantage of agglomeration. And it has become an important way to compete with the international competitive enterprises and the enterprises of the host country. There are many small and medium-sized enterprises in Zhejiang, and thanks to three decades of reform and opening-up development, a batch of industry clusters played an important and major role in promoting the economic development of Zhejiang province. Promoting enterprise cluster going out helps realizing the urgent need of reforming promotion and promoting open market-based economy of Zhejiang. Firstly, the paper analyzed the cluster mode of overseas direct investment (ODI) of Zhejiang enterprises from the theoretical perspective. Then, the paper summarized experiences of overseas direct investment of Zhejiang enterprise cluster. At last, the paper put forward related policy suggestions about further promoting Zhejiang private enterprise cluster go out.The structure of the article is including six parts, as follows:In the first part, the paper expounds the background, the significance of the research, the structure arrangement, the relative conception and the innovation and insufficiency of this article. The second part of the paper mainly reviewed the dominant theories on ODI and cluster, expound the study of cluster overseas direct investment by foreign scholars as well as Chinese scholars. The third part of the paper analyzed the status and deficiency of overseas direct investment of Zhejiang private enterprises. In the fourth part, according to the status and deficiency of overseas direct investment of Zhejiang private enterprise which discussed previously, and proposed the ODI cluster model. Through establishing mathematical model from organizational learning and transaction cost perspectives, the paper proves the role of cluster overseas direct investment in promoting the enterprise competition ability. The fifth part of the paper made a case study to analyze the status of national foreign trade and economic cooperation park in Zhejiang, verify the theory put forward above and summarized the leading enterprises cluster overseas direct investment and other successful cases of cluster going out in other countries and regions. Review the support of the policy about further promoting Zhejiang private enterprise cluster go out. The last part will conclude the paper, from the point of view in industry and location selected put forward policy recommendations to promote private enterprises in Zhejiang cluster of ODI.Essentially, cluster ODI is a particular type of oversea direct investment. Judging by oversea direct investment theory, this paper analyzes the characteristic of Zhejiang private enterprises. Using mathematical model and case analysis, this paper draw a conclusion that cluster ODI is a rational oversea direct investment model for Zhejiang private enterprises.