The Effect Of Industrial Transfer On The Development Of The Less Developed Regions

Industrial transfer is an effective way to optimize productivity layout and to form a reasonable industrial division of labor system. Meanwhile, it is necessary as methods of Industrial restructuring as well as economic development mode transition. Especially, the less developed areas, industrial transfer can directly and indirectly accelerate the capital formation, technological progress, industrial structure optimization and regional economic integration, so as to promote the economic development in less developed areas. In the new era, how to seize the current favorable opportunity to actively and effectively undertake industrial transfer, further promote sustained and rapid economic growth of the central and western regions, is becoming an important subject in China’s economic development strategy.However, according to practice experience, less developed areas can not necessarily realize greater economic growth just by undertaking industrial transfer. As a matter of fact, the economic effect of undertaking industrial transfer depends on two factors:one is the developed area’s transition decisions include what is to be transferred and how; another factor is the developing area’s basic economic situation as well as its policy system. Government’s behavior may amplify adverse impact.The industrial transfer from the coast to the mainland in China can be traced back to the late40s. And since2001, market forces have a greater say in industrial transfer. People desperately want to know what type of industry has been transferred in different stages, and the extent of the economic impact of this relocation. Based on sufficient theoretical discussion to these problems, this article furtherly launches the latest demonstration analysis and tries to verify the hypothesis.After rigorous analysis, we draw the following two conclusions:1. Through industrial associations, industrial transfer is likely to accelerate the capital formation, technological progress, industrial structure optimization and regional economic integration of the less developed areas. However, this positive effect depends on two decisive factors——the developed areas’decisions about what kind of industry to transfer and how; the socio-economic situation and related policy system of the less developed areas. The crucial point is that government must handle the relationship with the market in the industrial transfer process.2. During the domestic industrial transfer practice (1997-2007), the Midwest got a lot of capital injection from the East as well as closer inter-regional economic ties. However, compared with beneficiaries in the international industrial transfer history, the Coal Industry Moving Westward of this period was not a roaring success. In the current and future, clearing about the government related function localization is going to play a decisive role in China’s domestic inter-regional industrial transfer.