As one leading industry of the industrialized countries,the equipment manufacturingindustry provide technology to other industries, the technical level directly affect otherindustry competitiveness.The equipment manufacturing industry product the level,quality and performance improvement, industrial comprehensive energy reduction, torealize the development mode, improving the national economic benefits effectively role.The equipment manufacturing industry in China mainly distributed in the following areas:long Yangtze river and pearl river delta in shenyang, northeast China, as the center to xi’an are the center of the northwest in chongqing and as the center of the southwest. As inthe equipment manufacturing industry development of one of the earliest province ofliaoning province, has established a large-scale and complete range of the equipmentmanufacturing industry system.But for a variety of reasons, the equipment manufacturingindustry in liaoning province the development speed of the emerging of the equipmentmanufacturing industry gradually behind other provinces. In this situation, the equipmentmanufacturing industry in liaoning province from various aspects need to improve theircompetitiveness. And to speed up the economic development in liaoning province is oneof the necessary choice of the effective use of foreign direct investment (FDI)development high technology content and added value of the equipment manufacturingindustry and promote the equipment manufacturing industry gathering.In liaoning province as an example to analyze the equipment manufacturing industryagglomeration of FDI of influence is the main content of this article, expect for thedevelopment of manufacturing industry in liaoning province that conclusion.This paper mainly divided into six parts: the first part of this paper introduces thebackground and significance, research methods and the paper frame, then this paper theshortcomings of the analysis and innovation;The second part is reviewed andsummarized the theory, from foreign direct investment, industrial concentration and it therelation between the two three aspects to the findings of previous research papersummarized; The third part is mainly analyzes the current situation of the development ofthe equipment manufacturing industry in liaoning province, with location entropy andindustrial concentration index as a measure of liaoning equipment manufacturing industry agglomeration of index;The fourth part is a theoretical analysis of the interactiverelationship between the foreign direct investment and the industrial concentration;Thefifth part is the core part of this paper, by setting up a model to do a empirical analysis ofthe interactive relationship between equipment manufacturing industry and foreign directinvestment; The last part is the use of countermeasures of Liaoning foreign capital.
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