Research On Motivation Of Jinhua Industrial Transfer And The Impact On Economic Development

The eastern coastal areas of China are in the forefront of undertaking international industrial transfer, as a result, the economic development of coastal provinces made remarkable achievements, however, the differences in economic development within the region are obvious. In addition, in recent years, with the rapid development of the manufacturing industry in Southeast Asia and African countries, the land and labor prices of Chinese east coast rising and environment load to increase, and the resources factor accumulation and policy-oriented of the central and western regions of China, the industry of the eastern coastal areas gradually shows the tendency to transfer. In this context, the industry development of the less developed coastal areas represented by Jinhua, which is located in the transition zone between the developed coastal areas and the less developed inland areas,also showed significant transitional nature. That is being intercepted by Shanghai, south Jiangsu, Hangzhou, Ningbo and other cities and more areas with more comparative advantage in the process of undertaking international industrial transfer, at the same time, needing to move parts of industry sectors or value chain links with no comparative advantage in the process of optimizing and adjusting its industrial structure. Therefore, Jinhua industrial relocation has obvious characteristics of "dualism"-undertake industrial transfer and industrial transfer simultaneously. Nowadays, Jinhua industrial relocation is in full swing. So, what factors drive Jinhua industrial relocation? Which aspects of regional economic development have been influenced by Jinhua industrial relocation? And how the degree of these influences? In other words, the problem of the motivation and impact on economic development of Jinhua undertake industrial transfer and industrial relocation will directly affect the Jinhua industrial development and the policy in the future and need to give a clear answer with reasonable explanation.The article basically revolves around the following aspects:In the first place, on the basis of systematically combing the domestic and overseas research results of industrial transfer, guided by the factor endowment theory, labor-intensive industries transfer theory, marginal industry expansion theory, industrial gradient transfer theory, industrial cluster theory and social network research and government regulation theory, we built a theoretical framework of the motivation of Jinhua industrial relocation; Similarly, we constructed a theoretical system of the effect of Jinhua industrial relocation guided by the new growth theory, new trade theory, value chain theory, industrial structure theory and the trade environment effect theory.In the second place, combining with the characteristics of Jinhua’s economic development and the current status of Jinhua industrial relocation, the article made clear that the biggest feature of Jinhua industrial relocation is that at the same time to undertake industry transfer from abroad and the eastern region of China, there are also some industries need to transfer to overseas and other provinces of China from Jinhua. That is to say, Jinhua industrial relocation has the "duality" feature, which means undertaking industrial transfer and industrial transfer simultaneously. And in view of the characteristic, we attempted to build a measurement system of Jinhua industrial relocation:1)Using the sum of FDI, processing trade export, Hong Kong, Macao, Taiwan and foreign industrial investment represent the scale of Jinhua undertake international industrial transfer;2)Using domestic industrial investment express the scale of Jinhua undertake domestic industrial transfer;3)Using the sum of on foreign investment, investment in other cities of the province and investment in other provinces of China show the scale of Jinhua industrial relocation,In the third place, we further discussed the motivation of Jinhua undertake industrial transfer and industrial relocation with the above system. We believe the motivation of Jinhua undertake industrial transfer are factors restricting and comprehensive utilization of resources, the differences and complementarity of the industrial structure, policy-oriented and development needs of regional integration. And the motivation of Jinhua industrial relocation are reflected in three aspects:cost savings and market expansion of enterprises, industrial restructuring and rational division of labor in the industry, policy-oriented and the city functional orientation. Also, we used multiple linear regression model to empirical analyze. The results showed that the primary driver of Jinhua undertake industrial transfer lies in the enterprise development elements especially capital constraints, the main motivation of Jinhua industrial relocation is to promote industrial division and industrial upgrading and development requirements of regional integration is an important driving force of Jinhua industrial transfer.Then we systematically analyzed the impact of Jinhua industrial relocation on economic development by adopting the combination of qualitative and quantitative methods. We think there were both positive and negative effect of Jinhua industrial relocation on regional economic development and the positive effect was much greater than the negative effect. Specifically, the influence embodied in the following eight areas:regional industrial structure, labor and employment, technological progress, capital injections, foreign trade development, resources and environmental protection, urban development and taxation. And the impact on the area of labor and employment showed negative effects. After that, we once again confirmed the following conclusions by cointegration test and Granger causality test for time series:1)Jinhua economic development affected by undertaking industrial transfer and industrial transfer at the same time;2)The influence of Jinhua industrial relocation had on regional technical progress, capital injections, foreign trade, taxation, labor and employment is larger than Jinhua undertake industrial transfer, but Jinhua industrial relocation had smaller effect on regional industrial structure adjustment and urban development than Jinhua undertake industrial transfer;3)The technology and capital are the Granger reason of causing international industry transfer at this point, but domestic industrial transfer care more about Jinhua manufacturing competitiveness;4)Regional industrial structure adjustment and optimization is not only the gravity of Jinhua undertake industrial transfer, but also the thrust of Jinhua industrial relocation.Finally, we put forward the corresponding countermeasures and suggestions for the problems and the results discovered during the study. It includes:1)Accelerate the transformation and upgrading from industrial groups to modern industrial clusters;2)Accelerate the construction of regional integration;3)Look for differential phase interests and guide industry orderly transfer;4)Scientifically formulate corresponding policies and build service-oriented government;5)Implement the strategy of industrial innovation driven development and enhance regional innovation capacity;6)Strengthen human capital building to avoid brain drain;7)Pay attention to ecological environment protection and construction of "ecological Jinhua", and so on.