Interaction Between Agglomeration And Foreign Direct Investment Of Capital-Intensive Manufacturing In Yangtze River Delta

Capital-intensive manufacturing is a new way to accelerate the current regional economic development in Yangtze River Delta, as one of the most active region of manufacturing, it's in the leading position weather in terms of industry agglomeration and attracting FDI. Experience has demonstrated that in open regions, there is a positive interaction between industry agglomeration and FDI, FDI will speed up the formation of industry agglomeration, meanwhile the development of industry agglomeration will attract more FDI to this district. This thesis adapts Yangtze River Delta as a study area, focuses on the interaction between capital-intensive manufacturing agglomeration and FDI, and proposes some effective countermeasures for promoting the positive interaction of manufacturing agglomeration and FDI in Yangtze River Delta.Based on the extensive review of recent studies, firstly, the thesis elaborates the current status of capital-intensive manufacturing agglomeration and FDI distribution, the influence factors of them, then explores the impact path between them with the juction of industry competitives; secondly, the thesis uses cointegration analysis, Granger causality test to explore the causal relationship between the two parts, the results show that in the early development of capital-intensive manufacturing, FDI contributes to the formation of industry agglomeration, with the industry development into the mature period, industry agglomeration will further attract FDI, and the two parts will form a virtuous circle; finally, in the angle of accelerating the capital-intensive manufacturing agglomeration and further attracting high quality FDI, the thesis proposes the policy recommendations to achieve the positive interaction between the capital-intensive manufacturing agglomeration and FDI in Yangtze River Delta.