| In order to contract an economic margin between regions, and to change the processing trade distributes structure and form, promoting the transferring of processing trade to the middle and west is not only necessary, but also viable. But the theories field existence disputes on how to promote the transferring effectively. This paper has choosed a view of policy to launch a research to this problem. The paper has used a multivariate linear regression model to analyze the main factors about the location choice of the processing trade, in order to explain the importance of the general meaning policy advantage within the choice of the processing trade. The result expresses that the policy advantages influence to the processing trade in the east has already shown unobvious during the period of our research. Though the nationwide and special policy comes into force after 1992, the eastern parts of regions has carried out a more special policy before 1992, especially the establishment of 4 special economic regions in1980 and the open of 14 circumlittoral cities in 1984 and the establishment of special economic regions in Shanghai Pudong. So a great deal of processing trade comes together in this region. We believe that the function of special policy has already weakened in the east, and we suggest that the east should not continue to reserve this kind of special policies and the middle and west should implement special policies. Connecting down the paper throws vision towards concrete policy measures, and analyzes the policy obstacles of the transfer systematically. The paper, at last, puts forward some policy suggestions on the base of the new policy of processing trade just for reference.The main body of this paper is composed of seven sections. Section 1, introduction. We introduce the background and purpose of the research. Section 2, we provide an overview and information related to processing trade, both domestic and international. Section 3, we discuss the necessity and the usefulness of policy research from the angle of economics. We believe that the policy research is not only necessary, but also effective. S Section 4, we quote a processing trade model to prove a policy intervention can change the comparison advantages of the two sides, then change division of labour mode and processing trade mode, but will not bring welfare loss. Section 5, we use a multivariate linear regression model to analyze the main factors about the location choice of the processing trade, in order to explain the importance of the general meaning policy advantage within the choice of the processing trade. Section 6, we concretely analyze the policy obstacles of the transfer. We find the policy obstacles is in several aspects, for instance , the differ of policy , the coordination of policy, and the policy of the processing zones. Section 7, conclusion. We provide some policy suggestions such as the differ of policy , the tax policy, the margin policy, the processing zone policy and so on. |
