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Research Article
A Spatial Statistic and Spatial Econometric Analysis for Co-agglomeration of FDI in Producer Services and FDI in Manufacturing Industry

Ping Jiao and Minghui Jiang

Information Technology Journal, 2014, 13(17), 2682-2689.

Abstract

This study employs spatial statistics and spatial econometrics to analyze the co-agglomeration of (FDI) Foreign Direct Investment in producer services and FDI in manufacturing industry of 24 provinces in China during 2004-2011. The results indicate that the distribution of both FDIs presents the feature of spatial co-agglomeration, with a high level co-agglomeration in 5 eastern provinces and a low level co-agglomeration in 7 middle and western provinces. There is collaborative interaction between the agglomeration of FDI in producer services and that of FDI in manufacturing industry, FDI in manufacturing industry in the lagged one period will significantly promote the agglomeration of FDI in producer services in current period while FDI in producer services in the lagged one period will significantly promote the agglomeration of FDI in manufacturing industry in current period. The FDI in manufacturing industry prefers areas with large scale of economy, high level of manufacturing industry and lower labor cost while FDI in producer services prefers areas with large scale of service industry, high level development of manufacturing industry and human capital.

ASCI-ID: 28-3568

Cited References Fulltext

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