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01-Applied Mathematics & Information Sciences
An International Journal


Volumes > Volume 5 > No. 5-2S


Agglomeration Mechanism of Horizontally Integrated Multinationals under D-S Model of Limited-Number Enterprises

PP: 17S-23S
Zhang Yan-bo, Bian Xu, Liu Ye, Qu Hong-min,
By pointing out the limitation of a classical model of new economic geography –the Krugman model -- by loosening the assumption of the number of enterprises, we present a more general model under the circumstances of labor force relatively overmuch to investigate agglomeration mechanism of horizontally integrated multinationals in host country. The results of the model show that agglomeration of horizontally FDI is the outcome which includes accumulating and increasing the process of supply and consumption. Market equilibrium is attained by market jams and market enlarges the two kinds of contrary strength.

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