Research On Industrial Relocation In Yangtze River Economic Belt

This research commit itself to solve 4 problems of industrial relocation in Yangtze River economic belt such as "what’s the situation nowadays of industrial relocation in Yangtze River economic belt?", "Whether the industrial relocation can effectively upgrade the modernization level of industry development in Yangtze River economic belt?", "What’s the direction of industrial relocation in Yangtze River economic belt?" and "How to promote industrial relocation in Yangtze River economic belt driving by innovation?" The paper includes 7 chapters as follows.Firstly, recent research on industrial relocation in Yangtze River economic belt is summarized. The background and significance of the research is introduced. Concept of Yangtze River economic belt and industrial relocation are discussed respectively. The connotation of industrial relocation is compared and defined as a phenomenon of regional industrial relative scale change. It is pointed out that interdisciplinary research on industrial relocation in Yangtze River economic belt is just kick off. Research in such field is belonging to regional middle level, playing a role as a connecting link between the preceding and the following with its importance none of verbosity.Secondly, some theory basis and foundational model are discussed. To begin with, the theory basis is introduced in detail. Furthermore, the driving source of industrial relocation is analyzed by shift-share method in Yangtze River economic belt. It is pointed out that increase in GDP and third industry in downstream area in Yangtze River attribute to industrial foundation and structure advantage, while secondary industrial value added increase from industrial foundation. For the upstream and middle stream area in Yangtze River economic belt, their GDP and third industry increase from strengthen of industrial competence, while the secondary industrial value added comes from both industrial structure and competence with the problem that the industrial foundation is weak. Finally, the mechanism of provincial industrial relocation is analyzed. A model mixed with market demand, production plan and industrial relocation decision is constructed. With this model, a balance analysis is put forward. Some conclusions are put forward such as the decision of industrial relocation is related to the change of market total revenue and influenced by lots of factors. If the production factor cost, operation cost and transaction cost is inclining or the market share is declining, then enterprises are willing to industrial relocation. And then it comes for Yangtze River economic belt, in developed area the production factor cost, operation cost and transaction cost are all raising. However, undeveloped areas need more to cultivate industry with more market share, and this way is enough to attract more enterprises.Thirdly, the strategic change of the industrial relocation in Yangtze River Economic Belt is studied. To begin with, the development change in Yangtze River economic belt is divided into 8 stages, which are breeding, gathering, germination, balance, start, stagnation, recovery and take off. In the next place, the overall situation of economic and social development in Yangtze River economic belt is analyzed which is labeled as "a treasures belt with rich resources", "a convenient belt with location advantage", "an economic belt with half the wealth of the country" "a city belt with dense population", "an intelligence belt filled with science and technology", "a powerful belt with the opening to the outside world" and "an unbalanced belt with development differentiation". Furthermore, the international and domestic environment for the development of the Yangtze River economic belt is probed. It is pointed out that the current world economic recovery is tortuous and difficult, and the future of the world economy has lots of difficult, the impact of the external environment on Chinese economic development should not be optimistic estimated; the current Chinese economic development has entered a new normal status, the future of Chinese economic development is in promising middle or high speed, the reason why Yangtze River economic belt development strategy is put forward again is a mix of world trend, history and economic strength. Finally, an analysis of the core connotation of Yangtze River economic belt development strategy in this new era is put forward which is planning regional development with a new game style, from east to west, from coastal areas to inland, along the river and overland transportation routes, promote development gradually.Fourthly, the status nowadays of industry relocation in Yangtze River economic belt is analyzed. To begin with, the history and current situation of Chinese industrial relocation are summarized. Chinese industrial relocation process is divided into 4 stages, with 5 specifications, which are "Promotion of regional industrial relocation continues, the economic growth is great in the central and western area"; "Foreign investor accelerate to come in, especially transfer to the significant economic zone in central and western regions"; "Our government is changing the role of receiving passively, more and more enterprises go abroad"; "Industrial relocation has step in a new stage that the industrial chain layout optimization, relocation and change coordinated together"; "Industrial relocation show a typical feature in mode of chain, whole and agglomeration"; "Building the industrial park together has become an important way for regions to cooperate in industrial relocation". In the next place the main work of the regional (including the Yangtze River economic belt) industry relocation in recent years is summarized. In the strict sense, China has not yet formed an independent industrial relocation system of the Yangtze River Economic belt. Central government to direct the Yangtze River economic belt industrial relocation of the work are included in the national industrial relocation system, including "continuous implementation of the orderly relocation, focus on top-level design"; "continuous optimization of industrial structure, focus on the guidance of the classification"; "continuous strengthen the platform foundation, focus on the pilot demonstration"; "continuous improvement of linkage mechanism, focus on service docking". Furthermore, the status nowadays of industrial relocation from 2005 to 2013 is analyzed. With an analysis of the change of the industry regional ratio, it is found that industrial relocation all happen the 9 provinces and 2 metropolitans in Yangtze River economic belt from 2005 to 2013. In the downstream area of Yangtze River industries move out obviously while in the upstream and middle stream of Yangtze River industries move in distinctly and the majority belong to secondary industry especially industry. With an analysis of the change of production output national proportion, the major product in downstream of Yangtze River fell in the national proportion, while in the middle stream and upstream except Guizhou Province there is an uptrend especially in Sichuan, Chongqing, Anhui and Hunan Provinces. Moreover, the basic situation and main methods of the 9 provinces and 2 metropolitans in Yangtze River economic belt in promoting industrial relocation are summarized. 5 important inspirations promoting industrial relocation are summarized, which is "focus on industry undertaking and foster new competitive advantage both", "focus on high-end to undertake and industrial coordination both", "focus on creating clusters and clusters to undertake new models both", "focus on supporting the introduction and improvement both", "focus on optimization of hard environment and soft environment both". In addition, it is suggested that there are 4 problems on industrial relocation in Yangtze River economic belt:the paradox of "change cage for birds", the "vicious competition" of the industry, the validity of undertaking industrial transfer, and the relocation problem of "excess capacity" industry.Fifthly, the performance of industrial relocation in Yangtze River economic belt is evaluated. To begin with, the connotation of the modernization of industrial development is discussed. The industry development modernization is based on modern science and technology, aiming at the advanced level of the modern world, with the development of modern development theory. In the next place, an evaluation index system of the industrial development modernization level is constructed. Index system includes 8 first level indicators,15 second level indicators, which are "innovation driven", "scale", "speed", "quality", "efficiency", "coordination", "sustainability" "people-oriented". Furthermore, based on the entropy weight TOPSIS method, we evaluated the modernization level of Chinese 31 province’s industry both 2005 and 2013. Then, focusing on the evolution of the modernization level of industrial development of 9 provinces and 2 metropolitans in Yangtze River economic zone in 2005 and 2013,The study found that, from 2005 to 2013 in 31 provinces and metropolitan nationwide, downstream provinces of the Yangtze River economic belt maintain national leading in the modernization level of the industrial development where "innovation driven", "people-oriented", "quality" levels rise, but the pace of industrial development "efficiency", "coordination" level, especially in "speed", the average ranking fell 7. For the middle stream provinces, there are rapid modernization level improvement of industrial development with "innovation driven", "speed", "quality" "innovation driven", "efficiency", "harmony", "people-oriented", "sustainability" level are all improved, especially "speed", the average "speed", ranking rise 7, only "scale" ranking decreased slightly; the level of modernization of industrial development in the upstream provinces grow rapidly, the second indicators such as "innovation driven", "quantity", "speed", "quality", "efficiency", "coordination", "sustainability" level are all improved, especially is the average "speed", ranking rise 7.5, but "people-oriented" declined a little. In 2013, the Yangtze River economic belt industrial development modernization level developed provinces have 3, namely:Jiangsu, Shanghai, Zhejiang; undeveloped provinces have 5, namely Sichuan, Chongqing, Hubei, Hunan, Anhui; backward provinces have 3, namely:Jiangxi, Yunnan, and Guizhou. After a few years’efforts, in 2005 backward province Anhui turned into undeveloped provinces category in 2013. Finally, the relationship between the change of total industrial relocation and the change of industrial development modernization level is analyzed. The conclusion is that there is no clear relationship between the change of industrial relocation and the change of the level of industrial development modernization level.Sixthly, the direction for governments to push industrial relocation is analyzed. To begin with, a game theory analysis is put forward on the "vicious competition" mechanism of the government to promote industrial relocation. It is pointed out that to get the maximum benefit, both the developed and the underdeveloped provinces have to make a comprehensive consideration of the factors such as the difference of regional advantages, the net income of the local government, the difference between the two levels of labor wages and other factors. There is no need to blindly subsidies. In the next place, based on the knowledge spillover growth model, the utility of the provincial industrial relocation policies are analyzed. The utility of 3 kinds of policies are compared which are focused on "increasing provincial relocation payment", "reducing the transaction cost" and "reducing the cost of innovation". It is pointed out that inter provincial relocation payment reduces inter provincial income gap, but reduces economic growth rate, while reducing the cost of inter provincial trade and reducing the cost of innovation can both increase the economic growth rate and reduce the inter provincial income gap.Seventhly, innovation driven industrial relocation in Yangtze River economic belt is provided, which is to "strengthen the coordination, form the development effort", "clarify the responsibility boundary, promote the reform", "improve the market environment, create innovative atmosphere", "optimize the industrial layout, improve the industrial clusters" "improve the industrial ecology, strengthen the development platform", "broaden the financing channels, and guide the multi input", and "optimize the talent environment, strengthen the construction of intelligence".This research is a closely response to the great strategy of central committee and state council for promoting the development of the Yangtze River economic belt, solving the imperative problems. Researches on the latest research achievements in the Yangtze River economic belt and industrial relocation are deeply integrated together. Knowledge and tools in the fields of regional economics, economic geography, industrial economics, mathematical statistics, cooperation game theory and system engineering, etc. are used to study the practical problem. It’s an interdisciplinary attempt. The main innovation points in this research are as follows:(1) The driving source of industrial relocation is analyzed by shift-share method in Yangtze River economic belt. It is pointed out that increase in GDP and third industry in downstream area in Yangtze River attribute to industrial foundation and structure advantage, while secondary industrial value added increase from industrial foundation. For the upstream and middle stream area in Yangtze River economic belt, their GDP and third industry increase from strengthen of industrial competence, while the secondary industrial value added comes from both industrial structure and competence with the problem that the industrial foundation is weak.(2) A model mixed with market demand, production plan and industrial relocation decision is constructed. With this model, a balance analysis is put forward. Some conclusions are put forward such as the decision of industrial relocation is related to the change of market total revenue and influenced by lots of factors. If the production factor cost, operation cost and transaction cost is inclining or the market share is declining, then enterprises are willing to industrial relocation. And then it comes for Yangtze River economic belt, in developed area the production factor cost, operation cost and transaction cost are all raising. However, undeveloped areas need more to cultivate industry with more market share, and this way is enough to attract more enterprises.(3) The performance of industrial relocation in Yangtze River economic belt is evaluated. The conclusion is that there is no clear relationship between the change of industrial relocation and the change of the level of industrial development modernization level.(4) The direction for governments to push industrial relocation is analyzed. To begin with, a game theory analysis is put forward on the "vicious competition" mechanism of the government to promote industrial relocation. It is pointed out that to get the maximum benefit, both the developed and the underdeveloped provinces have to make a comprehensive consideration of the factors such as the difference of regional advantages, the net income of the local government, the difference between the two levels of labor wages and other factors. There is no need to blindly subsidies. In the next place, based on the knowledge spillover growth model, the utility of the provincial industrial relocation policies are analyzed. The utility of 3 kinds of policies are compared which are focused on "increasing provincial relocation payment", "reducing the transaction cost" and "reducing the cost of innovation". It is pointed out that inter provincial relocation payment reduces inter provincial income gap, but reduces economic growth rate, while reducing the cost of inter provincial trade and reducing the cost of innovation can both increase the economic growth rate and reduce the inter provincial income gap.