Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2014.158.164ShihaiYu FenSong 22014142Since 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.]]>Smith, A.,1976Marshall, H.,18915319338Porter, M.E.,1996198594Li, T. and X. Xu,2011Sheng, Y.,2011Markusen, J.R.,19959169189Head, K., J. Ries and D. Swenson,199538223247Head, C.K., J.C. Ries and D.L. Swenson,199929197218Barry, F., H. Gorg and E. Strobl,2003139583600Hilber, C.A.L. and I. Voicu,201044355371Gai, W. and J. Wang,1999362936Xu, K. and Q. Chen,20031237Zhao, W. and C. Zhang,2007118290Su, L. and R. Zang,201058591Bi, H. and T. Sun,20126149154MacKinnon, J.G.,199611601618