Research On The Impact Of FDI On The Agglomeration Of China's Mechanical And Electrical Manufacturing Industry

At present,with the deepening of the degree of economic globalization,the economic relations between countries in the world are becoming closer,capital flows and intertemporal allocations are becoming more frequent,and resources are constantly being optimized.In order to maximize profits,large enterprises rely on strong funds to expand production in countries and regions with low production costs.Based on foreign investment related theories,foreign investment can further improve the local economic level and product quality.Foreign investment not only brings rich management experience,advanced production technology,and a large amount of capital,but also can promote the economy of the investment destination.Growth and industrial upgrading to achieve mutual benefit and win-win results.The rapid development of the real economy is inseparable from the support of foreign capital investment,and foreign companies have become the hub between economic globalization and regional industrial agglomeration.Industrial agglomeration,because of its obvious scale effect and sustained competitive advantages,can further drive the rationalization of global industrial structure and the phased growth of regional economies.Among them,with the continuous improvement of the level of industrialization,the mechanical and electrical manufacturing industry has become an important pillar industry in China,which has made great contributions to the development of China's industry.Therefore,this article focuses on exploring the impact of foreign direct investment on the agglomeration of China's electromechanical manufacturing industry,which has important practical significance for studying China's use of foreign investment to promote regional economic development.This article first summarizes and summarizes the currently published theories and viewpoints of industrial agglomeration and foreign direct investment through literature review and theoretical analysis,and strives to clarify the relationship between foreign direct investment and industrial agglomeration in existing theories.The dissertation first analyzes the distribution of foreign direct investment in China's regions and industries,and then measures the degree of agglomeration of China's electromechanical industry by using indicators such as location entropy.Then it uses panel data of the electromechanical industry to empirically analyze the effect of foreign direct investment on The driving role of China's mechanical and electrical industry agglomeration,draw conclusions and put forward relevant policy recommendations.The conclusions of the article are as follows:(1)Since the reform and opening up,the amount of foreign direct investment in China has increased year by year,but in recent years,the proportion of China's manufacturing industry using FDI has been decreasing year by year.Although the proportion of foreign capital used in manufacturing has been decreasing year by year,its proportion is still much higher than that of other industries,and it is the industry that attracts the most foreign capital in China.From a regional perspective,the scale of foreign capital inflows in the eastern region of China is decreasing;while the scale of foreign capital inflows in the central and western regions is increasing year by year.(2)At the industry level,among the industries detailed in the mechanical and electrical manufacturing industry,the metal product industry,general equipment manufacturing industry,special equipment manufacturing industry,and transportation equipment manufacturing industry have a high degree of industrial concentration.At the same time,manufacturing Industry,computer,communications and other electronic equipment manufacturing industries,as well as instrumentation industry,have relatively low levels of industrial agglomeration.At the regional level,there is a large difference in the industrial agglomeration situation in the eastern,central,and western regions of China.The degree of agglomeration of the mechanical and electrical manufacturing industry in the developed coastal areas of the east is high,and the degree of agglomeration of the mechanical and electrical manufacturing industry in the central and western regions is lower than the national average.(3)FDI promotes the agglomeration of China's electromechanical manufacturing industry.The more inflows of FDI into the region,the better the effect of agglomeration of the electromechanical industry.(4)Financial development level FIR has an inhibitory effect on the agglomeration of the electromechanical industry.The agglomeration of the electromechanical manufacturing industry in regions with high levels of financial development is relatively poor.In some regions,as the industrial structure softens,the manufacturing industry including the motor industry appears outflow.(5)Factors such as transportation conditions,market demand,and human capital have positively promoted the degree of industrial agglomeration in China's mechanical and electrical manufacturing industry.