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Research on the Industrial Transfer of Middle China

Author: ZhangQingLiang
Tutor: YangQiuBao
School: The Central Party School
Course: Political Economics
Keywords: The central region industrial transfer acceptation industrial transfer industry selection government market
CLC: F127
Type: PhD thesis
Year: 2012
Downloads: 1691
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Abstract


With the deepening of China’s economic reforms, the pace of industrialrestructuring is gradually accelerated. In this process, in order to upgrade theindustrial structure, Eastern coastal region will transfer some industries withoutcomparative advantage to central and western regions due to the constraint of naturalresources and the induction of market factors. Possessing the relatively advantageousgeographical location, China’s central region is rich in natural resources such as land,labor, water and minerals. It should seize the historical opportunity named “emptyingthe cage and removing the bird” in the process of industry transformation andupgrading in eastern region, and it should take full advantage of the comparativeadvantage which contains better economic basis and the market potential, in order tostrive to be an important base the eastern industrial transfer. Industrial transferacceptation of central region is the strategic manifestation of balanced regionaldevelopment, and it is also the inherent requirement for accelerating regionaleconomic development. The provinces in central region should carefully analyze theadvantages and disadvantages of their own existence, and bring government’smacro-control into full play with taking market as orientation. Through theestablishment of a perfect market system and other means, the government strives toachieve fruitful results in the process of accepting industrial transfer, which relocatesto provide support for the realization of the Rise of Central China.To relocate the industries to the central areas is a systemic task, in this process,all the provinces in this region are facing the pressure that they must compete with theSoutheast Asian countries,the western regions and other provinces in these areas.Although it have gotten several great achievements, there are still many difficulties inthe process of accepting industrial transfer, such as the problems of the industrialstructure is unbalanced, the development gap with eastern regions is still large, thepillar industries are weak, the lacking capacity of supporting industries transfer, theshortage of innovational abilities in the process of undertaking the other industries, theincremental pressures from the resources and environments, the raising cost ofindustrial transfer acceptation, the uncoordinated relationship between industrial andsocial developments, and so forth. Therefore, if the provinces in the central regionsintend to survive in the competition, they must start from the background and stage of their own, as for the advantages, disadvantages, opportunities and threats in theprocess, especially for the deficiencies in the two aspects of market mechanism andgovernmental behaviors, they must understand these problems deeply and adopt theirown advantages, so as to make up for its own deficiencies. All these contribute tomake a proper choice of undertaking industrial transfer, which can lay a solidfoundation for upgrade of the central regional industries.On the basis of domestic and foreign literature review of industrial transferacceptation, the author employs a combination of comparative and macro-microanalysis and a combination of quantitative and qualitative analysis tocomprehensively and systematically study the situation, problems, industry selectionsand overall strategy in the process of accepting industrial transfer faced by the centralregion.This paper elaborates the history, status and foundation of industrial transferacceptation in the central region through analyzing its concept, goals, powermechanism, factors and models. The economic and social foundation includesregional current level of GDP, urban-rural structure, industry composition and firmsize industries, based on which the rational industrial choices by the government areable to effectively promote the industrial upgrading, and then accelerate thetransformation of pattern of economic development. The government needs torelocate to the advantages, disadvantages, opportunities and threats in the process ofaccepting industrial transfer to make appropriate choices, combined inimplementation process. Therefore, industrial transfer acceptation in the central regionwill be analyzed by applying SWOT method in Chapter3. Combined with theopportunities and threatens in the process, this paper analyzes the advantagesincluding location, resources, agriculture, and industry and the disadvantagesincluding irrational industrial structure, high industrial energy consumption, lowcapacity for independent innovation and lack of supporting. According to the analysisabove, this paper points out the direction for accepting industrial transfer in the centralregion. In Chapter4, chapter5and chapter6, the author has analyzed the problemsencountered by the central region in the process form perspectives of market and thegovernment, and then put forward countermeasures. From a market perspective, thecentral region needs to improve the market system, market liberalization andexpansion of market capacity. From the government perspective, the local governments of different areas ought to enhance mutual cooperation, reinforcetransform of government functions, strengthen the construction of public goods andmake industrial planning perfect. The chapter7has explored the problem of industryselection in the process of accepting industrial transfer and put forward several policyrecommendations by combining with the empirical analysis. This paper insists thatonly the central region can make full advantages of its comparative superiorities andtake these factors of actual labors absorbing, environmental carrying capacity andemerging industries development into account, as can enable the area to select itstransfer industries rationally. The final chapter of thesis has concluded severalstrategies and guarantees for the central regions from the overall perspective. Thispaper argues that only the government itself, in the process of the central regions’accepting industrial transfer, should make some effort to break the administrativerestrictions and to establish the cooperation mechanisms among different regions, todevelop modern logistics industries vigorously, to strengthen the human resources, toconstruct the industrial parks effectively, etc, can the central region accept industrialtransfer ultimately and promote regional industries to upgrade, then may acceleratean effective development in these regions.This paper, in the process of analysis, has taken some efforts to analyze theindustrial transfer mechanisms from two perspectives of government and market. Inthe analysis of government behavior, the paper has made several demonstrations aboutthe intergovernmental relations by establishing the game model, as might beinnovative. Furthermore, the scope of the study is not broad enough, thus it isnecessary to further the vision of this analytic research that might investigate theseproblems more comprehensively.

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