Regional Business Environment Catch-Up And Manufacturing Transformation And Upgrading

Over the past 40 years of reform and opening up,China’s economy has developed rapidly by virtue of the policy dividend of market-oriented reform and factor price advantage,and won the status of "world factory",but the manufacturing industry as a whole is still at the middle and low end of the global value chain.With the tightening of resource and environmental constraints and the gradual loss of labor cost advantage,the cost of domestic production factors has increased significantly.India,Vietnam,Cambodia,Malaysia and other developing countries rely on low labor costs to attract the transfer of global manufacturing industries.In addition,developed countries have implemented the "re-industrialization" strategy,the United States continues to promote the decoupling of the chain,to create a "chip alliance",China’s manufacturing industry is facing the "double squeeze" of developed countries and other developing countries at the same time "The serious challenge of promoting the transformation and upgrading of the manufacturing industry is urgent.However,the contradiction between industrial development and resource scarcity in each region has inevitably become an obstacle to the transformation and upgrading of manufacturing industry,and how to crack the bottleneck of manufacturing development in each province and city,enhance regional competitiveness and finally achieve the optimization and upgrading of regional manufacturing industry still becomes the focus of economic development in each province and city.An open and transparent,safe and stable,fair and just business environment is an indispensable part and an inherent requirement of a perfect market economy system,and optimizing the business environment is a necessary way to realize the transformation from a large manufacturing country to a strong manufacturing country.Since the 18 th Party Congress,General Secretary Xi Jinping has repeatedly made important comments on the transformation and upgrading of "Made in China",clearly pointing out the way to "break through and break the game".The State Council stressed that the transformation and upgrading of manufacturing industry should not only rely on preferential policies of governments at all levels,but more importantly,optimize the business environment.As an important indicator for the central government to assess the policy implementation ability of local government officials at this stage,the optimization of business environment may form a "scale competition",and the spatial spillover effect of business environment will accelerate the degree of regional business environment competition.Moreover,there is obvious spatial heterogeneity among different regions in terms of natural resources,economic development,production factors and industrial structure.Thus we cannot help but think: How does regional business environment catch-up affect the transformation and upgrading of manufacturing industry? What is the mechanism of its role? Is there a differentiated impact due to spatial regional heterogeneity or heterogeneity of catching up methods? How should local governments choose the business environment catch-up strategy to promote the transformation and upgrading of manufacturing industry? All these questions suggest that it is necessary to explore the interrelationship between regional business environment catch-up and manufacturing transformation and upgrading.This study aims to promote the transformation and upgrading of manufacturing industry,takes the regional business environment catch-up as the entry point,explores the connotation and characteristics of the business environment catch-up and the transformation and upgrading of manufacturing industry,and analyzes the mechanism of the regional business environment catch-up affecting the transformation and upgrading of manufacturing industry."Based on this,the VHSD-EM model is used to measure the level,direction and speed of transformation and upgrading of manufacturing industry by using the provincial data and manufacturing industry data.At the same time,the text data mining of relevant policy documents is conducted by using Python software to measure the business environment catch-up and the catch-up mode from two perspectives of local government direct cost investment and policy concern,analyze the evolution process of business environment catch-up and manufacturing transformation and upgrading in each region and its regional differences,and use the spatial panel model to measure the business environment catch-up and manufacturing transformation and upgrading from four levels of full sample,stage,region and mode.The spatial panel model is used to empirically examine how the business environment catch-up affects the transformation and upgrading of manufacturing industry,and to explore the differential impact of regional business environment catch-up on the transformation and upgrading of manufacturing industry.The main work of this paper is reflected in the following aspects.Firstly,exploratory data analysis is used to explore the development characteristics of regional business environment and manufacturing transformation and upgrading.The implementation of the local government’s business environment catch-up strategy is stimulated by factors such as national macro policy promotion,spatial competition for regional development,demand for industrial transformation and upgrading,and promotion of the new round of technological revolution.Meanwhile,the study finds that there is a positive correlation between changes in business environment and manufacturing development,but this correlation has regional heterogeneity and industry heterogeneity.Secondly,by constructing a mathematical model from the perspectives of policy concern and direct cost input,the mechanism of the role between business environment catch-up and manufacturing transformation and upgrading is investigated.The theoretical study found that with the implementation of the business environment catch-up,the level of enterprise innovation investment is continuously improved,and when a certain threshold is crossed,the regional manufacturing industry begins to achieve transformation and upgrading.In the long run,a non-linear relationship is shown between business environment catch-up and manufacturing transformation and upgrading,and when the direct cost investment reaches a certain threshold,continuing additional investment will inhibit this positive effect.At the same time,the effect of policy attention on manufacturing transformation and upgrading is also related to the regional business environment base and industrial structure.The business environment catch-up mainly promotes enterprise technological innovation and pulls manufacturing transformation and upgrading by reducing enterprise institutional transaction costs and promoting enterprise innovation investment.Thirdly,by measuring the business environment catch-up strategy,the catch-up method and the direction,speed and level of manufacturing transformation and upgrading,the evolution trend and regional distribution characteristics of business environment catch-up and manufacturing transformation and upgrading are studied.It is found that the catching-up trend of business environment in each region is obvious since 2012,but there are obvious differences in the regional catching-up methods and speed.At the same time,the spatial differences of manufacturing transformation and upgrading in China’s provincial areas are more obvious,and show certain clustering characteristics.Fourthly,by establishing a static panel model and a dynamic spatial panel model,the impact of business environment catch-up on manufacturing transformation and upgrading is empirically examined.The results show that there is a significant inverted U-shaped relationship between the direct cost investment of business environment catch-up and the transformation and upgrading of manufacturing industry in the period under investigation,and the policy attention is influenced by the basic conditions of business environment and industrial structure,and thus has a U-shaped relationship on the transformation and upgrading of manufacturing industry.Fifthly,by analyzing the regional spatial heterogeneity and the heterogeneity of catching up mode of business environment,it is found that there is an inverted U-shaped relationship between direct cost investment and manufacturing transformation and upgrading in the eastern region,while direct cost investment and policy attention in the central region can significantly promote manufacturing transformation and upgrading;the direct cost investment and policy attention in the western region can significantly promote manufacturing transformation and upgrading.In the western region,the direct cost investment has the effect of inhibiting and then promoting the transformation and upgrading of the manufacturing industry,and the policy concern and the transformation and upgrading of the manufacturing industry show a relationship of promoting and then inhibiting,and the polarization of the business environment in the western region is an important reason for the difference.At the same time,the adoption of the following approach and the catching-up approach are both conducive to promoting the transformation and upgrading of regional manufacturing industries,but they should match with the industrial structure of the region.Sixthly,using the moderating effect model,the intermediate mechanism of business environment catch-up influencing manufacturing transformation and upgrading is tested empirically.Business environment catch-up can strengthen the influence of innovation input on manufacturing transformation and upgrading,while it can weaken the inhibitory effect of institutional transaction cost on manufacturing transformation and upgrading.In other words,business environment catch-up can influence manufacturing transformation and upgrading by promoting enterprises’ innovation investment and reducing their institutional transaction costs.Meanwhile,the results are further validated by an extended analysis using the threshold effect test.Finally,the paper summarizes the main conclusions drawn from the study,draws useful policy implications based on them,and provides an outlook on the research shortcomings.To sum up,local governments should dynamically adjust the business environment catch-up efforts to further promote the transformation and upgrading of manufacturing industry by reducing the institutional transaction costs and increasing the enthusiasm of enterprises to invest in innovation.The business environment in the western region is relatively backward,so the local government should do an addition in construction investment and focus on Facilitate the business "soft" environment,while matching their own policies in construction investment and policy system industry structure characteristics.The central region is more sensitive to the business environment,can be a two-pronged approach,"both hard and soft".For the eastern region,a higher degree of marketization,can focus on improving the rule of law,international business environment construction.To take into account local conditions,not blindly catch up,to avoid the negative effects of the relevant policies in the implementation process due to "one size fits all","eyebrows and beards a grasp".