Empirical study of the influence Foreign Direct Investment affecting port market concentration

In recent years, ports in China are increasingly becoming one of the perfect capital destinations for international investors. The analysis of the relation between FDI and port market concentration has a great reference value for the further study of the impact of multinational companies on the port market structure in China. This article chooses data of foreign direct investment from year 1990 to 2011 in the Pearl River Delta port group. We use the Granger test and the ADF test to test the causal relationship between, concluding that Foreign Direct Investment FDI granger causes changes of market concentration in the Pearl River Delta port group when the lag period is 3 or 4. And from the paper, we see that FDI in the Pearl River Delta port group reduced market concentration through regression analysis.