Research On Vital Choice Of Undertaking Industrial Transfer In Central And Western Regions Of China

In the process of industrial undertaking, how the central and westernmake trade-offs for various has become the hot issues of academicconcern. The purpose of this paper is trying to find a selection mechanism,which in the process of industrial undertaking, helps the central andwestern regions to choose the more efficient industries to nurture andsupport rather than accept or blindly loot regardless of their ownconditions. Regional business cost as foreign investment decisionvariables naturally becomes a powerful tool and primers. Therefore,clutching the core concepts of “business cost”, the first of all, this papercombs the connotation of the business cost. Secondly, we builds abusiness cost index system and give the business costs high and lowranking of the central and western provinces except Tibet. Again, usingthe industrial static and dynamic clustering index, we draw the transferredindustry of five eastern provinces and one city(Shandong, Jiangsu,Zhejiang, Fujian, Guangdong, and Shanghai). Finally, with a sensitivityanalysis to measure the industry to be transferred industry on the strengthof the central and western provinces and municipalities of Commercecost-sensitive, the judgment should be selected and given suggestions.Roughly the following conclusions:(1) Theoretically, Business costs are the main elements of costs andtransaction costs，different industry types of business costs constitute a different sensitivity to the same area。Resource-intensive industries andlabor-intensive industries is relatively high sensitivity of factor costs,capital-intensive industries and knowledge and technology-intensiveindustries is relatively high sensitivity to the cost of the transaction.(2) By building a business cost index system, this paper uses analytichierarchy process to measure value and ranking of business cost in centraland western provinces and cities. The conclusion shows that factor cost isdominant in the western region, in the contract, transaction costs isdominant in the central region. However, the gap in the total business costis not obvious in the Midwest, other regions except Gansu、Shanxi、Chongqing and Jiangxi has formed low-lying land of business cost andhas comparative advantage to attract investment(3) Using the correlation coefficients to measure the sensitivity of thetransferred industries to business cost, the conclusion shows that what issuitable to key industries of the central region are non-metal, metalproducts, food processing, Culture, Sports, leather, feathers, chemicalfiber, paper, electricity, gas, special equipment, printing, electricalmachinery and crafts and what is suitable to key industries of the westernregion are non-ferrous metals, non-metallic, metal products, foodprocessing, rubber, textile, stationery and sporting, special equipment, electrical and instrumentation and culture.