2014•Journal of Hunan Finance and Economics UniversityRequires access

Empirical Research on Influences of FDI Agglomeration Effect on China's Industrial Agglomeration

MA Li-ju

Abstract

This paper discusses the influence of disequilibrium distribution of FDI to industrial agglomeration in China from the angle of accumulative effect.Using the theory of new economic geography research hypothesis put forward,and 1987-2012 provincial panel data to empirically,this paper finds that the disequilibrium distribution of FDI significantly affects the regional agglomeration of industry in our country,but in the control of FDI,labor costs,such as after endogenous variable,FDI has an obvious effect of regional industrial agglomeration,which show that FDI inflows are influenced by the development of the regional industry itself.

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Key concepts: Disequilibrium, Economies of agglomeration, Foreign direct investment, Economic geography, China, Economics, Distribution (mathematics), Panel data