Increasing FDI Attraction in Western China: Under a View of Agglomeration Effect

Abstract

Starting from a comparative analysis of FDI penetration in western and eastern china,this article aims to examine the relationship between agglomeration of locational enterprises and FDI penetration in western China in recent years. Based on the correlation analysis and Granger causality test, this article intends to figure out a possible way of attracting FDI in western area.