Research Of Mutual Relationship Between FDI And Industrial Agglomeration In Liaoning Equipment Manufacturing Industry

FDI is not only fund, at the same time, it is a blend of technology, market, an aggregate of knowledge, and many other factors. A number of research and practice of all countries also show that FDI can bring host country its technology and funds, required for in promoting regional economic growth, optimize the industrial organization, to create more employment opportunities play an important role in many aspects.Industrial agglomeration as a kind of economic phenomenon, has become a research focus in the new economic geography. The study concluded that industrial agglomeration makes agglomeration zone enterprises get technology spillover, sharing lower logistics cost and high quality human resources, increase scientific and technological level and overall competitiveness.As the pillar industry, Liaoning equipment manufacturing industry have the reputation of "Oriental ruhr", since is a reflection of China’s equipment manufacturing levels. Since the 1980 s, in Liaoning equipment manufacturing sector a lot of investment, FDI and rapid flow of provided the catalyst for the equipment manufacturing industry cluster formation. How to make better use of FDI to promote the better development of Liaoning equipment manufacturing industry agglomeration, so as to realize the revitalization of old industrial bases, promote the transformation and upgrading of Liaoning economy it is very important.First of all, in this paper, the theory of FDI and industrial agglomeration theory and the relationship between FDI and industrial agglomeration generalizes the related theory and literature. The second examines the liaoning equipment manufacturing industry and the present condition of the liaoning equipment manufacturing industry of FDI, and through the location entropy index and industrial concentration index of liaoning equipment manufacturing industry agglomeration status measure. Formation, optimization, location selection, cycle accumulation from four aspects analyzes the interactive mechanism of industrial agglomeration and FDI. Again, through the empirical analysis, it shows that FDI and interactive relationship of liaoning equipment manufacturing industry cluster exists. And from the level of industry and region on the influencing factors of industrial agglomeration are summarized, and on the analysis of these factors on the measurement from the empirical point of view it is concluded that the influence of various factors on the industrial agglomeration. Finally, based on the above of FDI and interactive relationship of liaoning equipment manufacturing industry cluster research, I am put forward suggestions for the better use of FDI in liaoning province equipment manufacturing industry.