Research On The Location Choice Of The Eastern Industrial Transfer From The Perspective Of Location Advantage

After30years of reform and opening up, China’s economy has made soar development. The GDP increases from0.36trillion of1978to40.12trillion of2010, and industry structure becomes from28:48:24of1978to10:47:43of2010. The industrial structure gets great improvement, and economic achievements have attracted worldwide attention. In the process of it manufacturing as China’s national economy mainstay industry play an important role. But in recent years, with the rapid development of China’s economy, the cost of labor’s living in east rises gradually, and the phenomenon that the peacock flies southeast is no longer common. On the contrary the words of "labor shortage""recruitment difficult" in the southeast coastal areas appear in newspaper or TV, which becomes the shackles of local enterprise fast development. Part of the enterprises has the potential to fly away from the southeast, and it has the model of successful landing, such as the china industry of Foshan in Guangdong province transfer to Jiajing of Sichuan or Zibo of Shandong, and Shandong Ruyi Group choose investment in Ghongqing, and Youngor of Zhejiang appear in Xinjiang and so on. With the development of China’s market reform deep, the activity of industrial transferring from coastal areas will become more and more. But due to the lower labor cost in Southeast Asia area and the advantage of geographical space distance in China’s western region, the current stage of the eastern industrial transfer face multiple paths to choose. So, eastern enterprises how to choose his transfer path? This paper, taking this as the breakthrough point, makes a comparative analysis on the situation of Southeast Asia with Midwest of China and gets a conclusion that at the present stage the Midwest has the advantage to undertake in the eastern industrial transfer. This paper is divided into six parts.The first part of the paper is the introduction, including the thesis writing background and significance, research ideas and methods, and the innovation of the paper and its deficiency.The second part is the theory introduction theory of the full text, including the relevant theory of the location selection, the theory of industrial transfer and location selection and the relevant research on undertaking industrial transfer.The third part is the empirical research of eastern industrial transfer. First of all we make analysis on the causes of the eastern industrial transfer, thinking there are three reasons contributing to the east industry transfer:one is the eastern region market saturation, excess capacity, the enterprise seeks new economic profit places; the second is the increased price of land, labor, raw materials and other things make enterprise find another home land; the third is the need in industrial structure upgrading and economic structure adjustment in eastern region. Then we use static cluster index and dynamic cluster index to introduce the concrete industry that should be transferred in eastern provinces.In the fourth part of the paper, we make comparison basic elements of Southeast Asia with the Midwest of China which are the two main path of the eastern industrial transfer, such as labor element, infrastructure construction, market capacity and development prospects, agglomeration economy, industrial chain integrity, government policy and the investment environment and so on, finding that China makes industrial upgrading, and it’s inevitable that part of the enterprises transfer out. Some enterprises will choose to Southeast Asian countries, but the scale is not big, because Southeast Asia countries are small and medium-sized countries so that the ability to accommodate industrial transfer is limited, so the prospect of Midwest China undertaking transferred industries is optimistic.The fifth part first we analyzed the problems of the Midwest in the process of the eastern transfer including:one is the lack of the coordinated development of regional policy; the second is the lack of selective investment combined with their own features;the third is the policy favorable effect weaken with the external pressure of competition intensifying, etc.. Then we use the "prisoner’s dilemma" game model to explain that the government through the competition preferential policy finally lead to local economic welfare loss, so playing local industry advantage, having goals, choosing to undertake transferred industry is very important, and the third section with empirical data indicates that the advantage industry in Midwest representative provinces.The sixth part is the conclusion. At first we take review of the full text, and then we take some suggestions for the Midwest of China on the basic of their real undertaking situation.