Research On The Impact Of Transfer Payment On Regional Industrial Agglomeration

At present,the principal contradiction facing Chinese society has evolved.What we now face is the contradiction between unbalanced and inadequate development and the people's ever-growing needs for a better life.The regional development gap in China is very serious.Promoting industrial development in backward areas such as the West is the current government focus.One of the work,in response to this,the party's report on the 19 th National Congress also put forward the �establishing a new mechanism for more effective regional coordination and development�,in order to innovating the regional policy control mechanism,we must establish a regional balanced fiscal transfer payment policy.China is still in the industrialization stage,and the industrial agglomeration level of a region largely determines the economic development level of a region.Therefore,by analyzing the influence mechanism of industrial agglomeration,this paper explores the means to promote regional economic growth,narrow the regional economic gap,and promote the coordinated development of China's regions.In this context,firstly,based on the theoretical research of Haobo.Wu and Husen.An(2016),this paper continues to expand the free capital model of new economic geography,further relaxing the assumptions and making it closer to the real economic environment.The paper creatively assumes that the technical level and the degree of freedom of foreign trade between the two regions are simultaneously in an asymmetrical state,and then introducing the policy factor�the transfer payment policy subsidizing the backward regions.Under the asymmetric conditions,this paper analyze the influence mechanism of industrial agglomeration,study the impact of transfer payments on regional industrial agglomeration,use MATLAB software to simulate and analyze the impact of various factors.An empirical test has also been conducted on the relationship between transfer payment and industrial agglomeration by using the panel data of 30 provinces in 1995-2016.The study has found that the transfer payment policy,which is one of the main tools for promoting coordinated regional development,can indeed promote the transfer of economic activities in developed regions to backward areas,thereby improving the level of industrial agglomeration and promoting economic growth in backward areas,but this degree of promotion is smaller,indicating that the role of the transfer payment policy for subsidies in the western region has had little effect on narrowing the regional economic gap.While analyzing the influencing factors of industrial agglomeration,it has also found that the gap in technology level,regional foreign trade freedom,market share,etc.will also have a greater impact on industrial agglomeration.Among them,the level of technological level and the impact of regional market size affect the industry agglomeration deeply,and narrowing the gap in technology between regions,can significantly improve the economic development of backward regions.Finally,based on the results of theoretical research and empirical analysis,relevant ideas and suggestions are put forward on how to promote industrial agglomeration in backward areas.It is necessary to strengthen the function of "blood transfusion" and "hematopoiesis" in backward areas,especially the "hematopoiesis".You should optimize the structure of the transfer payment policy and use the transfer payment funds to improve the level of technology,improve the infrastructure conditions and traffic conditions,and to promote the market size in underdeveloped regions,protect local industries in backward areas,and suppress the outflow of factors,etc.