The Research Of The Relation Between FDI And Industrial Agglomeration In Guangdong Province

A mass of foreign direct investment (FDI) inflow in China has aroused far and wide studies from famous scholars. FDI inflow not only upgrades one region's industry structure in some extent but also boost up the region's whole welfare and the ability of sustaining development. As the front region of China's reform and opening, Guangdong province effectively allure FDI for its advantage of geography location and favorable police. In this way Guangdong province has taken the lead in optimizing the industry's structure in China. But from the 1990's years the factor that influence the decision of FDI local choice has changed gradually, as the new characteristic of the industry's development, industrial agglomeration has become more and more important in the decision of FDI local choice.First this theme sums up the main theory of FDI and industrial agglomeration, it shows that FDI and industrial agglomeration have bidirectional influence to each other. The mechanism of FDI and industrial agglomeration is the base of this bidirectional influence. There are there lays that industrial agglomeration will be in favor of FDI,it is exterior scale economy , exterior scope economy and domino offect of innovation.Based on the fact of the FDI's agglomeration effect in Guangdong, the article focuses on the degree of the effect that the phenomenon brings to FDI's local choice so that a more practical strategy for future FDI absorption can be included. The most important part in the text is the demonstration of cause and effect test of Guangdong's FDI and industrial agglomeration form the actual...