The Agglomeration Analysis Of FDI In Chengdu-chongqing Economic Zone

Along with the advancement of economic globalization and investment liberalization, the world’s capital flows between countries are growing, FDI as one of the most active form of capital flows, laid a foundation to the optimized allocation of global resources. Chengdu-chongqing economic zone where is the most concentrated economic activity, the most developed industry, and the Highest density, and the most abundant technology power in the west of china, has a certain concentration. Actually using the pinch is $21.279 billion in chengdu-chongqing economic zone, Chengdu and Chongqing accounted for 96.9%.FDI agglomeration in the Chengdu-chongqing economic zone has some main characteristics including periodic obviously, unbalanced regional distribution, Hong Kong as the main source, some special industry having higher concentration degree, and so on. Although chengdu-chongqing economic zone in attracting foreign investment has obtained certain result, but the growth rate is slow, compared with the eastern coastal areas still exists bigger difference, still not out of the capital plight.New economic geography is the theory that study The agglomeration of economic activities within the scope of space. The paper, therefore, using the most classical CP model of new economic geography, Dividing the study area into two parts, existence of FDI agglomeration region and there is no FDI agglomeration, establish a model to analyze FDI agglomeration centripetal force and centrifugal force in Chengdu-chongqing economic zone, Centripetal force mainly including the market base, geographical location and transportation costs, economies of scale, Centrifugal force mainly including higher transportation costs, crowded, the associated effects before and after production.The greater FDI investment products consumption accounts for the proportion in the total consumption, the greater the consumer market, economic activity can produce agglomeration. The higher transportation costs, the more FDI tend to be scattered, on the contrary, the lower transportation cost, the more FDI tend to be concentrated. FDI enterprises approaching to each other result in cost savings. Industry scale and increasing returns can generate economies of scale. To contact before and after the link produce the positive feedback effect, difficult to overcome the space distance of transportation cost have a negative feedback effect. Because of this kind of negative externalities, crowded companies tend to shift to lower congestion areas, producing outward centrifugal force. The effects of production contact lead to FDI spatial dispersion.By comparing, this paper established a panel data to analyze the chengdu-chongqing economic zone of FDI agglomeration. The nine variables are selected for research, including,five new economic geography variables, market basis, economy of scale, localization effect, transportation costs, labor costs, also choose other variables including the level of economic development, urbanization level, foreign trade dependency, government intervention. Using eviews7.0 software to estimate the model, found the FDI agglomeration of chengdu-chongqing economic zone model is individual random effect model. The conclusion is that FDI of Chengdu-chongqing economic zone presents dual-core agglomeration state. At present centripetal force effect of the chengdu-chongqing economic zone is more obvious, the new economic geography factors is the main factor of FDI agglomeration in chengdu-chongqing economic zone,labor is an important factor to attract the chengdu-chongqing economic zone FDI agglomeration, transportation cost of the centrifugal force is weakening.From what has been discussed above, Chengdu-chongqing economic zone in the future should play a role of Dual-core FDI agglomeration region radiating surrounding areas, guiding the direction of foreign investment, timely transformating of foreign capital policy, constructing the supporting industries in the area, strengthen the associated effects before, urban service function,and after production and the FDI agglomeration circulating accumulation causal mechanism, speeding up the development of modern service industry, further optimizing the investment environment, so as to improve the level of using FDI in chengdu-chongqing economic zone, and having sufficient impetus to the development of the surrounding area, finallyl driving in the western region through the capital difficulties.