A Study On The Relationship Between The Inflow Of FDI And The Competitiveness Of Local Manufacturing Industry In Yangtze River Delta

Since 21^st century, more and more foreign investment has chosen to inflow into developing countries, which is a significant impetus to the industry development and the enhancement of industrial competitiveness in the host country.Yangtze River Delta, being one of the wealthiest districts, has attracted abundant foreign direct investment in the last ten years. Undoubtedly, the inflow of FDI, directly or indirectly has improved and enhanced the industrial competitiveness in Yangtze River Delta, which is also an obvious impetus to the upgrade and development of local industry.The distribution of manufacturing industry invested by FDI in Yangtze River Delta shows like "block" or "strip" obviously, which is called industry cluster. Of course industry cluster is one of the key factors which influence the inflow of FDI.Based on the above background, taking manufacturing industry invested by FDI in Yangtze River Delta as a study object, through qualitative and quantitive analysis on the relationship between FDI and industry's competitiveness, this paper conducts a detailed and specific research on that point and also brings some indexes for valuation.Based on the previous analysis, this paper introduces some indexes like competitiveness index, specialty index and labor density index and conducts a detailed analysis on the relationship between FDI and regional industrial competitiveness.Finally, this paper puts forwards some suggestions on how to improve Yangtze River Delta's industrial competitiveness.