FDI,Local Industries’Spatial Agglomeration and the Effect of Economic Growth:The Evidence of Zhejiang Region

This paper examines the spatial agglomeration of FDI and local industries and the effect of economic growth based on the Zhejiang region with the panel data method.The paper finds that spatial agglomeration can promote regional economic growth observably,but the effect is weak.The degree of FDI spatial agglomeration,and not the local industries’ spatial agglomeration,is an important factor of FDI.And the paper also finds that local industries invest in the region with local industries’ spatial agglomeration greatly,and crowd out by FDI.In order to improve the ability of endogenous growth in Zhejiang,some measures should be adopted to enhance the relationships between FDI and local industries.