Agglomeration Of Fdi Location After The Distribution Of The Orientation And Regional Advantages

While the world's economic globalization and regional integration has a tendency to be developing more and more rapidly, the economic gap between eastern and western China is growing wider and wider. Regional differences are core issues of regional economic problems. In order to improve the nation's economic efficiency as a whole and bridge the gap, late-developing regions have to realize a swift catch-up by a wide margin and by compression of time. It's of great importance that the middle and the west of China should achieve an economic leap-over so as to give full play to late-developing advantages.An approach to exerting late-developing advantages to the utmost is the very objective of this article. Centering on industrial agglomeration as core concept and clue, this article is intended to probe ways of the economic leap-over of late-developing regions, holding a view that industrial agglomeration actually plays a vital role in making full use of regional late-developing advantages. Recent research has made it well-known that effect of industrial agglomeration is a main appeal to investment of multinational corporations throughout the world. With enormous data coming from the national statistical department and board of trade, and with empirical analysis and practical cases as explanation adopted, this article regards agglomeration economy as a decisive motive for the location selection of overseas investment of multinational corporations.The practical problem this article deals with is the dilemma of late-developing advantages in the middle and the west of China. Due to inferior position, it's suggested that these regions should focus on fostering its own industrial agglomeration to put into effect the international strategy of attracting foreign capital. In this way, the middle and the west can beat the capital dominance of the east, enlarge regional deposit of foreign capital, boost economic growth and realize the target of economic catch-up ultimately.