The Interactive Relation Reaserch Between FDI And Industry Cluster

With the development of economy globalization, China absorbed large amount of Foreign Direct Investment (FDI). However, allocation of FDI in China is unbalance, and it shows obvious geography conglomeration. Industry Clusters have gradually become a significant factor for Foreign Direct Invested Companies' zone selection, concerning the needs of resources optimization configuration, innovation, bringing down transaction expense and localization strategy. Moreover, Foreign Direct Invested Company, Foreign Direct Invested Companies also absorb their own suppliers moving into the local zones form outside, and promote local industry clusters coming into being and developing further, while investing in those places. there is a mutual impact relationship between FDI and Industry Clusters: building Industry Cluster can absorb more FDI; counting on FDI can elevate international competitive strength of our country's Industry Cluster correspondingly. Thus, it is necessary to improve the mutual impact relationship between Industry Cluster and FDI in China.First, this paper reviews some relevant domestic and foreign theories, and points out the importance to study the mutual impact relationship between Industry Cluster and FDI in China; Second, this paper defines some relevant terms in the field of the mutual relationship between Industry Cluster and FDI in China, and introduces the main study method and classification; Third, this paper takes north area,middle area and west area as examples, applies ADF and Cointegration Theory to examine series of number of industry companies, sales income of industry companies, production value of the third industry and FDI. This paper gets the conclusion that there is long-term mutual relationship between Industry Cluster and FDI; Finally, this paper gives some corresponding suggestions to improve the mutual impact relationship between Industry Cluster and FDI from the aspects of governmental policies and regulations, strategy of Industry Cluster.