Interregional Economic Relationship And Industry Migration

First of all, this paper introduces some theory related with the interregional economic relationship including population flow, capital flow, commodity flow and also the information and technique flow theory. After that, some industry migration theory, including Arthur Lewis's labor-intensive industries' migration theory, Ramond Vemon's life cycle theory, Kaname Akamatsu's flight formation of geese theory and Kiyoshi Kojima's marginal industry theory.After that, the author starts to discuss the relation between interregional economic relationship and industry migration. Industry migration involves with interregional transfer of population, goods, capital, technology etc. It has strengthened the economic relationship between regions. Economic relationship in return fastens the industry migration between regions. It not only changes the "dual economy", but reduces the interregional gap, and speeds the process of the region to become a homogeneous one. From the view of "welfare economics", interregional relationship and industry migration help the whole region to advance toward the maximum of welfare.Finishing the theoretical part, the paper gets on to the practical part. Analysis of Shanghai and Zhejiang's industry structure shows that Shanghai is obviously advanced than Zhejiang. So it can be reasoned that industry must migrate from Shanghai to Zhejiang, if it exists. Compared with Japan, the industry migrated to Zhejiang from Shanghai should be the labor-intensive industry. Actually, analysis of the product "cloth" has proved that some of the industries have migrated.But opposite to our deduction, recently people have seen that many enterprises have moved from Zhejiang to Shanghai. After hot discussion, the author thinks that the industry between Zhejiang and Shanghai has the quality duality, which means that from the surface, we can see enterprises moved from Zhejiang to Shanghai, but actually the industry has migrated from Shanghai to Zhejiang. Reasons as following,1. Migration of enterprises does not mean to migration of industry. Zhejiang enterprises moved to Shanghai just partly. They only receive technology, information in Shanghai, but do not manufactures.2. Technology plays a key role in the industry migration from Shanghai to Zhejiang. And it also contributes a lot to Zhejiang's economic growth.3. The reason why industry migrates from Shanghai to Zhejiang mainly lies in the provision side rather than demanding side.Finally, the author has made some advices to the government.