Analysis Of The Industry Agglomeration' Effect On The Location Choice Of Foreign Direct Investment In The Pearl River Delta

Since the reform and opening to the outside world, Foreign direct investment swarmed into china, having important impulse for the economic increase of our country. The influx of foreign investment can settle the capital bottle-neck which restrict our economic, introducing into foreign advanced technology, equipment and the managing experience, optimizing the economic and industry structure. On the whole, put the economic to a nice and rapid situation. However, we have an obvious gap of geographical distribution when we absorb foreign capital. It is obviously that most of foreign investments muster in the east littoral, especially in the pearl river delta. For exploring the reason of such phenomenon, this article analyze the location choice towards FDI in pearl river delta from the angle of industry agglomeration..This article use FDI Theory , Location Theory and Industry Agglomeration Theory, under the basement of a great deal of research literature, through collect and settle the relative data of 9 cities from the pearl river delta, using the Local Specialized Index(LSI) and other corresponding index to measure the level of centralization of industry in pearl river delta, and also form the Econometric model . It get a conclusion that industry agglomeration is one of the key factor when foreign merchant do the location choice. This article also put forward some policy suggestion in the aspects of optimizing industrial centralization, speeding up the innovation of technology, enhancing regional industry reasonable layout, quickening the basic construction and the development of the third industry, combining the analyze and depiction to the current problem of industry agglomeration in the pearl river delta.