China's Manufacturing Industry Transfer Phenomenon And Influence Factors Of Research

China’s rapid economic development comes along with regional economic imbalance, and industrial relocation is one of the important ways to promote balanced regional economic development. With summary and review on research development and key conclusions of regional relocation in and abroad, and by dividing China into three regions, the east, the northeast, and the middle and west, this paper focuses its research on the tendency, the mechanism of China’s manufacturing relocation and the factors that influence the manufacturing relocation from the east to the middle and west.Based on the data of20industries of manufacturing from2000to2010, this paper first analyzes the concentration, structure and relocation tendency of manufacturing in the three regions. Then, in combination of the actual relocation tendency and industrial relocation theory, the paper constructs its own theory framework, that is, the new economic geography theory(NEG) is the intrinsic mechanism of manufacturing relocation with market scale, input output link and transportation cost as the essential drive for manufacturing relocation, factors like labor force, capital and technology provide the initial difference in factor endowment, and regional policies promote the relocation as external impact. Based on this framework, the paper analyzes the factors that influence the manufacturing relocation from the east to the middle and west in detail through establishing econometric model.The conclusions are:first, it has formed a relocation trend from the east to the middle and west in11industries of manufacturing in last ten years, and the trend is strengthening. Second, the combination of comparative advantage theory, the NEG theory and the policy can give a more comprehensive explanation for the trend. Third, labor and capital representing factor endowment, input output link and transportation cost representing NEG factors, and government engagement in economy representing regional policies play significant positive role in promoting the trend, while labor force and regional opening-up play a negative role, and market scale’s influence is not significant.