Industrial Transfer, Industrial Agglomeration And Economic Growth

Since the implementation of reform and opening policy. China has adopted a non-balanced growth strategy. From then on, the East Coast has witnessed r apid economic development, while the gap between the East and Midwest has been enlarged. Although "Western development" and "Rise of Central China" h ave been implemented and regional non-equilibrium has been improved, the ga p is still large between the East and the Midwest. In recent years, especially a fter the financial crisis, the East has been confronted with the constraints of el ements cost and their own structural problem, which lead increasing pressure o n industrial transfer. Meanwhile, rich in resources and improving in infrastructu re, the central and western regions are in urgent need of economic developme nt. In this context, actively exploring the industrial transfer and industrial agglo meration has important theoretical and practical significance for narrowing the r egional disparities and promoting regional sustained and healthy development.For the reasons above, the paper firstly reviews the relevant literatures. Secondly, take China's manufacturing industry for example, we measure the level of China's industrial transfer and agglomeration by EG index and CR indicators, and confirme that the industrial transfer do mainly occur in the labor-intensive industries and resources-capital intensive industries, but not occur at all industries simultaneously. The main concentration area of China's manufacturing is transferring from the Southeast coast to the Midwest and from the South to the North.Then, we explore the relationship beween the variable of industrial transfer and agglomeration and regional economic growth by Cobb-Douglas Production Function. It states that the relationship is positively of significance and the effect is lagged. However, the variable impact of the East has less significance compared to other regions, indicating industrial transfer has negative influence on agglomeration effect. Besides, capital contributes more than labor, local protectionism is only significant in the western region. Then, technology-intensive industry contributes more to economics than other industries. Finally, based on the above theoretical analysis and empirical research, we get some policy conclusions to actively promote industrial transfer.