Economic integration based on FDI agglomeration: An empirical analysis of the Yangtze-delta

The agglomeration of foreign direct investment (FDI) has made a great influence on the economic integration of regions in China like the Yangtze-delta. This paper identifies two kinds of index factors that reveal the trend of GDP and FDI in the Yangtze-delta, and the method of time-series analysis and cross section analysis are used. The conclusion reveals that economic integration is in close relation to the agglomeration of FDI, with an investment creation function in FDI polarization and investment diverse function in FDI proliferation. These two processes may also promote the economic integration in undeveloped regions.