Abstract: When Multinational Corporations invest in the host countries,their spatial distribution often takes on the core-periphery structure.Factors affecting the core-periphery structure include scale economy,geographical factors and institutional factors and so on.There are typical core-periphery structures in Pearl River Delta and Yangtze River Delta of China,which have different mechanisms and processes.Comparing with dispersed location of the Multinational Corporation,the core-periphery structure not only facilitates positive feedback to expedite ingress of the Multinational Corporation,but also promotes technology diffusion and knowledge spillover to improve regional innovation capability.

Key words: Multinational Corporation, core-periphery structure, cluster