Research On The Problems Of Undertaking Industrial Transfer Of Western Region

At the present stage, China’s economy has entered a stage of strategic transition. Changesin the international economy and trade is altering the main comparative advantage betweeneastern regions in China which is foreign-based economy. Labor costs in China easternregions has continuously improved, and the environmental carrying capacity, city’s tolerancehas reduced quickly. Corporate profits is decreasing, Specially in the manufacturing industry.These situations have raised new demands on China’s economy. In order to accommodatethese changes, our government is implementing the western development basic nationalpolicy. Under this backgrounds, the eastern region has powerful demands in shifting outwards.As the majority of the backward areas of the western provinces, they have undertaking theeastern industrial transfer needs, and makes theirselves accessing to leapfrog development.This paper researches the macroeconomic factors that needs to be focused on, and Theireffects on promoting regional economic growth under this industrial transfer process.In the theoretical research, accordance with the main framework of the New EconomicGeography, Institutional Economics and other Traditional Economic Theories, This articlesummarizes the the main five factors about promoting and enhancing the level of economicdevelopment of the western region. These factors can be considered to be importance aspectsabout the western region getting leapfrog development. They include: First, policy factor;Second, human resource factor; Third, the market scale factor; Fourth, IndustryAgglomeration factor; Fifth, infrastructure factor. After a theoretical analysis, the paper startsan empirical analysis. In this section, the paper picks some more representative measurableindicators to established regression model. In the sample selection, the paper selects twogroup. One is the western group and the other one is eastern group. About the time span, thepaper picks samples cross2004to2012. In the end, the paper makes five recommendationsabout how to improve the local economy of western regions. First, speeding up constructionof personnel troops, forming abundant human resources. Second, making the industrial parkas a breakthrough, promoting industrial agglomeration. Third, improving the level ofinfrastructures, reducing transaction costs. Fourth, raising personnel incomes, expanding theconsumer markets. Fifth, implementation of preferential policies to attract industrial transfer.