Abstract: Based on panel data of 285 prefecture-level cities in China from 2003 to 2016, application of SDM model and GTWR model, from the perspective of spatial dependence and heterogeneity, empirical analysis of the impact of FDI and transportation infrastructure improvement on manufacturing agglomeration. The research arrives at the following conclusions:FDI and transport infrastructure conditions have significant positive effects on the agglomeration of manufacturing industry, but its impact is significantly different between regions, the influence of FDI on manufacturing agglomeration in western region is weak. Transportation infrastructure has a typical spatial non-linear diminishing effect on manufacturing agglomeration. Therefore, further improve infrastructure conditions in the western region, it is still an important measure for China and narrow the imbalance of regional development in the western region for a long time to come.

Key words: FDI, transportation infrastructure, manufacturing agglomeration, spatial spillover, spatial and temporal heterogeneity