Empirical Study on Impact of FDI on Liaoning Equipment Manufacturing Industrial Clusters

Based the exploration of the effects of foreign direct investment ( FDI) on industry clusters, this article employs time series econometric techniques (Unit root test, Cointegration, Granger causality and Linear regression model) to test the impact of FDI on equipment manufacturing industry clusters using data for Liaoning over the period 1999 to 2010. We find that that FDI play an important role in industrial clusters of equipment manufacturing industry, while industry clusters are not the reason for which attracts FDI into Liaoning equipment manufacturing. And according to empirical results this article puts forward corresponding policy recommendations.