The Empirical Research Of The Influence FDI Had On Industrial Cluster In Liaoning Province

Since the reform and open policy, the utilization of foreign direct investment in ourcountry has continued to expand the scale，and the number has been increasing gradually,the inflow of foreign direct investment has made a certain effect on the local economy.Many scholars’ research began to aim at foreign direct investment. Among them, moreand more people focus on the foreign direct investment to the influence of industrycluster. But most of people mainly analysed of the relationship between the foreigninvestment and the industrial cluster in coastal areas before, they pay less attention to thenortheast in China. Liaoning is not only one of old industrial bases in the northeast, butalso the colony of the traditional advantage industry in China. In recent years, the rapideconomic development in Liaoning province, and the improvement on the investmentenvironment, attract many foreign investment to flow in. This paper takes Liaoningprovince as the research object, and then analyses the effect of foreign direct investment inLiaoning province on the industrial cluster.In the1980s, the foreign direct investment in the whole China has a small scale,and the quantity is not large. However, since the beginning of the1990s, China’s foreigninvestment in all of the developing countries has taken the first place, and the number ofthe foreign direct investment has begun to increase gradually. Liaoning province takesevery chance as an opportunity for development, has achieved great success on theintroduction of foreign capital projects and the amount. During the period of the"eleventh five-year plan", the actual use of foreign investment in Liaoning province hasincreased more than twice, from5.99billion in2006to20.75billion dollars in2010. In2008, the actual use of Liaoning province followed Shanghai and Jiangsu, taking thethird place. It’s the first time that Liaoning province has ranked in the national top.This article specifically can be divided into four parts. The first part is theintroduction, mainly elaborating the background and significance of the problems,andmaking a review on the research at home and abroad. In addition, it introduces theresearch methods and the structure of the paper, and points out the research papers in thedifficulty and the insufficiency. The second part is the theoretical basis of the part. Basedon the definition about the concept of the industrial cluster and foreign direct investment, the author analysises the influence mechanism of foreign direct investment on industrycluster. Further, the author establishes the framework of analysis, selects the index ofindustrial cluster and then sets up the empirical model. The third part mainly introducessomething about FDI and industrial cluster in Liaoning province. First, the authorintroduces the general situation of FDI in Liaoning province during these years; secondly,the situation of industrial cluster in Liaoning province is analyzed by the two aspectswhich are location entropy and industrial concentration index.The fourth part of this article is the empirical analysis. Based on the analysisframework established,the author states how FDI in Liaoning province plays a role inpromoting industrial agglomeration by empirical analysis. The fifth part is aimed at theLiaoning province actual situation proposed necessary countermeasures and Suggestions.