A Theoretical And Empirical Research On Financial Support For Undertaking Industrial Transfer Of Central Region

Since the reform and opening up, due to geographical advantages and the impactof national policies favoring reform, coastal areas have actively undertookinternational industrial transfer to get a rapid economy development. However, now itfaces increasingly serious environmental and resource pressures. As demographicbonus is decreasing, the carrying capacity of the environment is reducing, resourceconstraints is becoming tense, it is urgent for us to “change the cage for birds”.Central region has broad market and the produce cost in it is low, therefore, itbecomes the important place for undertaking industrial transfer from the costal areas.Although having a good opportunity, central region hasn’t achieved a desirable resultof undertaking industrial transfer for a variety of reasons, such as economy, policyand society. As we all know, financial is the primary initiator, the core guide, keyplayer and important supporter of industrial transfer. It being not synchronized witheconomic development is one of the important reasons that hinder central region toundertake industrial transfer. In this region, nowadays, financial ecologicalenvironment quality is not high, regional financial integration degree is low, thenecessary cooperation mechanisms between the government and financial institutionsis lack and financial innovation is not enough. All these affect the pace of undertakingindustrial transfer. There is a great practical significance of studying the presentsituation of financial development and clarifying the mechanism of financial supportfor undertaking industrial transfer in central region.In this paper, the background of undertaking industrial transfer has beenanalyzed from the perspective of macro and micro. Then, the regional economicgrowth theory and financial development theory are arranged on the basis of domesticand foreign literatures, the theoretical foundation for central financial support toundertake industrial transfer is talked about. Subsequently, complex relationshipbetween financial support and industry transfer, content and mode of financialsupporting industrial transfer are profoundly analyzed. After that, the present situationof the industry that has been undertook in the six central provinces, financialdevelopment and its constraints on undertaking industrial transfer are described:financial environment being not of high quality, financial integration with coastalareas being not sufficient, a common dialogue mechanism between government, bankand enterprise being inadequate, financial innovation being not enough, and so on. Onthis basis, simultaneous equations, one of a empirical research method, is used to test mechanism of action and coupling between financial and industrial transfer.Conclusions are as follows: the interaction between financial development andindustrial transfer actually exits, but the influence of the financial support for theindustrial transfer is significant, one of industrial transfer on financial development isnot. In the end, suggestions on how financial supports undertake industrial transfer incentral regions are put forward in the light of the exiting problems and empiricalresults.