The Impact Of Foreign Direct Investment On Industrial Agglomeration

At present,the links between countries in the world are becoming more and more economical.Capital can flow more frequently between countries and countries,and resources are optimized to a certain extent.In order to maximize their own interests,a large number of large enterprises with foreign direct investment strength have invested heavily in areas with lower production costs.As one of the earliest provinces open to the outside world,Fujian Province has attracted a large number of foreign direct investment every year because of its traditional advantages of attracting foreign investors such as Hong Kong,Macao and Taiwan to have a natural “Shan Haiqiao”.According to the relevant theory of foreign direct investment,foreign direct investment can bring advanced technology,large amount of capital and mature management experience to the local area,improve the product quality and labor productivity of the local industry,and thus promote the optimization and upgrading of local industries,and ultimately promote the The regional economy is developing very fast and fast.However,under the new economic normal,although it has advantages in attracting foreign direct investment,the overall economic development of Fujian Province has not accelerated due to the entry of a large number of foreign direct investment,but has encountered bottlenecks in development.Therefore,Fujian Province urgently needs to change the traditional development mode and select industries with more market development potential for cultivation.Fujian's characteristic industries have the characteristics of large development potential and high uniqueness,and the output value of their representative industrial clusters has exceeded 100 billion mark,which has played an increasingly important role in the economic development of Fujian Province.Therefore,improving the level of industrial agglomeration as the basis of the cluster of characteristic industries plays an important role in promoting the economic development of Fujian Province under the new economic normal situation.According to the analysis of the theory of foreign direct investment and industrial agglomeration,foreign direct investment can influence the industrial agglomeration through the model of capital migration,and its impact mechanism can be divided into self-reinforcing effect and location optimization effect.From the perspective of the urgency of developing characteristic industries in Fujian Province and the inherent advantages of Fujian Province in absorbing foreign direct investment,it is necessary to explore the impact of foreign direct investment on the industrial agglomeration of characteristic industries in Fujian Province.Therefore,this paper selects the data from 2000 to 2017 as a sample and sets up the corresponding panel model.It aims to explore the impact of foreign direct investment on the industrial agglomeration of characteristic industries in Fujian through empirical analysis,and based on the results obtained,Fujian Province's future economic development has made corresponding policy recommendations.