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The Analysis of Industrial Agglomeration Effect in FDI's Location Selection

LI Yong-hui

Abstract

Foreign Direct Investment(FDI)flows in our country with more and more scales,but it's distribution in the region is typically unbalance,and the regional difference is extremely obvious.This article divides the effect of industrial agglomeration into five level effects from the angle of attracting FDI,and selects 12 indexs to synthesize the five levels agglomeration effect.On the basis of the former analysis,this article carries on the Empirical Analysis of various industrial agglomeration factor and FDI,analyzes the influence of different industrial agglomeration factor on FDI Location Selection and draws the corresponding conclusion and policy suggestion.

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Key concepts: Foreign direct investment, Economies of agglomeration, Selection (genetic algorithm), Economic geography, Economics, Distribution (mathematics), Econometrics, Microeconomics