Regional Industrial Structure Adjustment And Optimization

At present, the economic globalization and regional economic integration aredeepening.Domestic and international industry need detailed division of labour,which leads to the phenomenon of regional transfer of industry. In China, due togeographical advantages, eastern coastal areas developed very quickly in the pastdecades, but after thirty years of rapid development, the cost of production is alsorising. For instance, those production factors like labor cost and land price are muchmore expensive,what’s more,other production cost, such as electricity, fuel,transportation of raw materials and capital are also rising.Thus,Investment cost isrising. The advantage of original cost in eastern costal areas, which used to be theabsolutely advantage of labor-intensive industries, has been gradually disappeared. Atthe same time, environmental problems have become increasingly serious, thecapacity tends to be saturation which leads to the result of industrial diffluence. Inconclusion, the eastern costal areas have already entered the post-industrial era.Itneeds the optimization of industrial structure and upgrading of product structureurgently. Besides, those industries,especially those which lost their comparativeadvantages,should move to the middle west areas.Under such context, In January12,2010, the state council declared the document of "the demonstration plan of industrialtransfer to Wanjiang City Belt".The plan sets the Wanjiang City Belt,in AnhuiProvince,as the key zone of national demonstration of the eastern industrial transfer,which not only may realize the coordinated development of eastern and centralregions, but also promoted the rapid development of central regions.First,the essay would introduce the theories of domestic and foreign industrialstructure optimization and the industrial transfer.Then, the essay will analyzed someimportant cases of domestic and international industry transfer.I would like tosummon some successful experiences from those cases,which I hope could pave theway for the further development of WanJiang City Belt. Second, the essay would analyze the present status of Wanjiang City Belt, mainlyfrom perspectives of overall economic development, utilization of foreign capital,foreign capital utilization status and the status of undertaking the eastern industrialtransfer. I would also use th SWOT analysis method to analyze the basic status ofWanjiang City belt.Finally, the essay would use different ways to analyze Wanjiang City Belt and itsneighbour provinces. I would like to use Location Quotien analysis， Gradientcoefficient analysis， Shift-Share analysis.On such basis, I found the regionaladvantage and competitive advantage of Wanjiang City belt.Empirical evidences alsoshow that Wanjiang City belt has formed absolutely advantages of industriesdevelopment. Last but not least, the essay also offers some suggestions of thedevelopment of the Wanjiang City belt.