The Mechanism And Clauses Of Industry Transfer

Analyzing the geographic concentration and the regional specialization of manufacture in China the last decade, we find the whole region could be divided into three parts, and reveal the transfer route of the first-class classification of manufacture among those three regions, the 7 types of manufacture which transfer from the East to the Central-western Region as well. Based on a new economic geography framework, we integrate the three causes of industry transfer into a new framework:the competitive advantage and economy policy as the external original clauses, and the NEG's as the intrinsic cumulative clause. Based on the new framework, we explore the clauses of manufacture transfer from the East to the Central-western Region using the provincial panel data during 1999-2008. The main findings are:(1) Factor endowments such as the stock of capital leads to industry transfer, while labor force and wage level are not conspicuous. Factor endowments are more relative to the transfer of labor- and resource- intensive manufacture than the equipment manufacture. (2) For the causes of NEG, industry link and transport cost markedly promotes industry transfer, while market scale restrains it. Compared to labor- and resource- intensive manufacture, the transfer of equipment manufacture is more influence by the transport cost. (3) Economy policy such as openness and government spending is not directly conspicuous. Finally the paper develops some suggestions to promote rational industry transfer and balanced development among regions.