The Research Of Spillover Effects Of Foreign Group Investment Based On Industry Association

In recent years, with the continuous advance of economic globalization, foreign direct investment (FDI) is becoming the main form of international capital flows. Governments have to attract FDI as a national focus of economic policy making considerations; their objective is through the use of FDI spillovers to local enterprises to promote industrial upgrading and technological progress. The response to the economic development of the situation, the traditional mode of foreign direct investment is showing a new feature. In the new situation, how to better play the spillover effects of foreign direct investment has become an urgent problem to be solved.As a new pattern of FDI investment, this paper studies foreign group investment from both qualitative and quantitative aspects. Foreign group investment proposes two conditions: foreign investment cluster and local enterprises upstream and downstream industry association. The paper carries out a quantitative research by using panel data model. This conclusion is: do foreign-funded enterprises by the downstream industries associated with the local companies had a spillover effect, and the regional concentration of FDI that can greatly affect the occurrence of spillover effects. According to the conclusions, this paper gives out some suggestions about the problems need to be paid attention through the process of local government to attract foreign investors.