The empirical research between FDI and the third industrial agglomeration in Jiangsu province

Abstract

This article aims to explore the deeper relations between FDI and the third industrial agglomeration. Seven typical industries of the third industry in Jiangsu are selected as the example. Based on the relations between FDI and the seven industries' industrial agglomeration, we analysis the relation between FDI permeability and the industry agglomeration degree empirically. Meanwhile, metering methods such as Granger causality test, regression analysis and linear regression equation are used to get the conclusion which differs from the general ones, namely FDI impacts the industrial agglomeration differently for different industries. And FDI and the third industrial agglomeration is not always positively related, the impact factor can be either positive or negative.