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The Theoretical and Empirical Study on Industry Transfer from Eastern Region to Central Region in China

Author: WangQin
Tutor: HuangWenPing
School: Zhejiang University of Finance
Course: Industrial Economics
Keywords: industrial transfer central regions eastern regions influential factor
CLC: F127
Type: Master's thesis
Year: 2012
Downloads: 461
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Abstract


In recent years, the phenomenon of uneven development between regions have become increasingly prominent, the eastern coastal region with its natural advantages and the tilt of the early national policy occupies in most advantageous resources, economic output has been far ahead, while the economic development of majority central and western regional is still lagging behind. In contrast, the eastern region has get over middle stage of industrialization, moving towards industrialization post stage. On the one hand, the fourth international industry shift wave is emerging; on the other hand, there are a lot of backward industries in the eastern region. To meet the requirements of the times, it is necessary to transferred out the region’s backward industry for the eastern region, not only to achieve the eastern region’s economic structure upgrade, but also conducive the rapid rise of the central region, and promote the region’s advantages to full play, so that China’s economy development come to a virtuous circle road.The phenomenon of industrial transfer originated in foreign countries, related research in this area from mostly foreign scholars. In order to explore the issue of China’s industrial transfer, we must start from our country’s economic development with realistic analysis. In this paper, we make a special study to the industry transfer, mainly from the eastern coastal areas to less developed central regions of manufacturing industry, which is the most representative industrial transfer in the economic entities.In the specific structural arrangements, this paper start from the analyzing of industrial transfer theory of domestic and international in the literature reviews, trying to find out some views and research methods with a strong reference point of the regional industry transfer. In the body of the paper, we first analysis the background and realistic basis of the eastern industrial transfer. We come to the conclusion by the comparative analysis of GDP, per capita income in the central and eastern regions that there is a big gap between central region and eastern region. This gap also becomes the reality basis of industrial transfer. Then we measure the absolutely share of manufacturing in different years, analysis of China’s current industry transfer trends and characteristics. The results show that China’s industrial transfer is not large at the present stage, the expected large-scale industrial transfer do not occur, which is consistent with our present situation. The results also show that the shift of the industries not only occurs in the labor-intensive industries, but part of the capital and technology-intensive industries also have been transferred. This article attempts to reveal the factors that affect the transfer of industries. Then we try to improve these factors to increase the industrial transfer between central region and eastern regions. Domestic and foreign scholars have extensive papers about industries transfer from a macro perspective. After that, we analysis the basic reasons of industry transfer in the perspective of business activities in theory. Then we find out the eastern industrial transfer factor from these motivations. Then based on the panel data from the Statistical Yearbook of the six provinces in regression model, we empirical analysis of these factors in labor-intensive industries, capital-intensive industries and technology-intensive industries that which variables have a significant impact, which have little effect on the model variables. Empirical conclusions show that government policy, market size and industry concentration have obvious promote role on the three different types industrial transfer and that the government policy is a long-term factors. Finally, this paper end with the proposals about how to promote the industry undertake for the central region based on the empirical research conclusions.

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