A Study On International Industrial Transfer And China’s Industrial Policy

Industrialization is a significant milestone of modern civilization, due to its powerful influence on human society. At the same period, upgrading of industrial structure and international industrial transfer also occurred simultaneously. Especially in recent50years, the industry transfer in East Asian has become more active than before. After1980s, China was also involved in the international industrial transfer. Therefore, it is significant to study the influence about international industrial transfer on China’s economic development.This thesis reviews the literature of international industrial transfer. Firstly, the thesis describes the relevant literature about the Flying Geese Paradigm. It’s a significant theory, because Flying Geese Paradigm is proposed based on the experience of the East Asian industrial transfer. Secondly, Product Life Cycle theory studied the different characteristics about each stage of process of production. Product Life Cycle is closely related to industrial cycle. Thirdly, this paper analyzes the defects in Solow Growth Model. Besides, FDI also plays an important role in the study of international industrial transfer. Finally, this thesis reviews the literature about interaction effects between domestic industrial transfer and the Chinese industrial policy.There are three reasons for the transfer of industries:the macroeconomic, microeconomic and industrial economy. And three aspects of Influencing factors on industrial transfer:government, technology and regional development. The reasons of microeconomic of Industrial transfer are profit. The reason of industrial economy is the degree of industrial development, regional development level, the macroeconomic environment and national interests. The reason is to adapt to the change of Product life cycle, as well as the need to adjust the international division of labor.The thesis makes a comparison among America, japan and china on the industrial transfer history. The thesis argues that the international industrial transfer and upgrading of industrial structure are very similar. Because of the differences among every national industrial development, the industrial structure in different countries is also entirely and total different. As the result of different comparative advantages, international industrial transfer arises. In addition, the thesis discusses the feasibility to achieve a great leap forward development. The reasons why it is so difficult to realize is technological monopoly, lack of capital accumulation and disproportion income levels. This paper takes Guangxi as a case to illustrate these reasons. Although it is difficult to achieve leapfrog development, we can still accelerate the speed of development to catch up with developed countries.The study analyzes the consequence after the International industrial transferring on developed and developing countries, and the impact on international trade and regional development. Firstly, the thesis analyzes the impact of international industrial transfer to developing countries. The beneficial impacts on developing countries from international industrial transfer are to promote the upgrading of industrial structure and economic development. And adverse effects on developing countries from international industrial transfer are environmental pollution and serious social problems. Besides, the thesis analyzes the impact of international industrial transfer in developed countries, too. The Favorable impacts on the developed countries are to promote the industrial upgrading. Adverse effects on the developed countries are causing industrial hollowing.Finally, the thesis suggests some relevant policy proposals. At first, establish a suitable role for government. Such as develop infrastructure and supporting services, as well as enact appropriate industrial policy. Then giving some specific advises.