Spatial and Industry Cluster of Agricultural FDI into China: Evidence from 13165 Foreign Firms’ Choices

  • NaixiLiu
  • Tinghui Han
Cite this:
NaixiLiu, & Tinghui Han. (2020). Spatial and Industry Cluster of Agricultural FDI into China: Evidence from 13165 Foreign Firms’ Choices. Journal of Business Management and Economics, 8(04), 01–07. https://doi.org/10.15520/jbme.v8i04.2858
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Abstract

Based on the adding up of panel data from 13165 agricultural firms in 1998 and 2013, use the fixed effect estimation within controlling the fixe effects of year, cities and industry links, we find four robustness conclusions. Firstly, Chinese agricultural FDI has significant spatial agglomeration and industrial cluster phenomenon. Secondly, the fixed effect of the year is remarkable which means China's agricultural FDI is affected by macroeconomic fluctuations significantly. Thirdly, the fixed effect of city is not significant which means the local regional agricultural FDI management diversity does not resulted in significant differences of effectiveness in the extent of practice. Fourthly, the fixed effect of industry link is significant, of which agricultural products processing industry has a higher probability of industrial agglomeration while comparing with the planting industry. Afterwards, based on the four conclusions, we put forward two policy recommendations for "how to more effectively utilize agricultural FDI into China".

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