Influence of FDI on China’s Industrial Agglomeration——Research Based on the Industrial Growth

This article used the empirical research to study the influence of FDI on China’s industrial agglomeration based on the analysis of total concentration of industrial development.The research discovers that: FDI is the Granger reasons of China's industrial agglomeration,and it has a lag effect on the level of the industrial agglomeration.With the growth of FDI,China's industrial agglomeration will be further intensified.However,the short-term impact of FDI on industrial agglomeration is not significant,there is a phenomenon of a delay.Granger test also shows that industrial agglomeration affected FDI location decisions as well.The conclusions of this study illustrate that FDI can be used to strengthen the local industrial agglomeration to narrow the gap between regions,and it also means that through the promotion of industrial agglomeration and relational level more FDI could be attracted to achieve the goal of positive cycles.