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Journal of Applied Sciences
  Year: 2014 | Volume: 14 | Issue: 2 | Page No.: 158-164
DOI: 10.3923/jas.2014.158.164
 
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Dynamic Relationship of Foreign Direct Investment and Manufacturing Industrial Agglomeration

Yu Shihai and Song Fen

Abstract:
Since the late 20th century, as the economic globalization, foreign direct investment poured into China and produced the great influence on domestic industrial structure and layout, industrial competitiveness and industrial agglomeration. Industrial agglomeration is a world phenomenon in the economic life. The software industry of Silicon Valley of the United States and Bangalore of India and ceramic industry of Italy are famous cases; many areas rely on industrial agglomeration on the southeastern coast of China have also made significant economic benefits. Taking transportation equipment manufacturing industry of Hubei province in China for example, this study aims to analyze the dynamic relation between foreign direct investment and industrial agglomeration and important effects on the industrial agglomeration from FDI. The empirical result shows that FDI and the development of a regional industrial agglomeration have a positive correlation and at the same time the regional industrial concentration would attract FDI entry. Finally, put forward the corresponding reasonable policy recommendations so as to promote the efficient use of foreign capital and the better development of industrial clusters.
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How to cite this article:

Yu Shihai and Song Fen, 2014. Dynamic Relationship of Foreign Direct Investment and Manufacturing Industrial Agglomeration. Journal of Applied Sciences, 14: 158-164.

DOI: 10.3923/jas.2014.158.164

URL: https://scialert.net/abstract/?doi=jas.2014.158.164

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