Research On Yunnan Government Behavior In The Reception Of Industrial Transfer In The Yangtz River Economic Belt

Regional industry transfer is an important economic phenomenon in China recently, which also arouses many experts and scholars attentions. Yangtze River Economic Belt covers the 11 provinces or cities across the Eastern, Middle and Western regions in China. Yunnan Shuifu County is the first port of the Yangtze River Economic Belt, and Yunnan was included in the planning of the Yangtze River Economic Belt for the first time in 2013, which is of great strategic significance for Yunnan industrialization process. Larger gradient difference of endowments and industrial structure between the downstream and upstream regions of Yangtze River Economic Belt is essential condition for regional industrial transfer. Therefore, how can Yunnan government realize regional industrial transfer based on comparative advantages? In order to provide answer for the above question, this paper compare the comparative advantages of industry structure of different provinces in Yangtze River Economic Belt after giving a brief literature review of related theories and a brief introduction on Yangtze River Economic Belt. This paper finds out that provinces along the Belt is undergoing a rapid economic development and upgrading of industry structure is taking place and the proportion of Second and third industry is growing too; significant difference exists among provinces in terms of economic structure and there are advanced and less advanced economies. Specialization of industry structure between Yunnan and other provinces along the Belt is increasing. A SWOT framework is used to analyze the industry transfer from provinces along the Belt to Yunnan. It turns out that Yunnan enjoys a lot of Strength in industry transfer, including geographical advantage, resource advantage, industry advantage and cost advantage; Yunnan also faces with a lot of weakness, including industry structure, energy consumption, industry chain and innovation ability. This paper develops game model of two governments to analyze their behaviors. The results show that which policies the transfer-out government would take, depending on whether there is a new industry into the transfer-out inspired by the case of Nash equilibrium. However, regardless of what decisions of transfer-out government would make, the undertaking government should develop the appropriate incentives to attract businesses to move into. The ultimate goal of the government is to promote the development of regional economic in the process of industrial transfer, and to make up for market failure, to optimize the industrial structure and resource allocation. Local government should promote the upgrade of industry structure by policy guidance to realize the development of investment environment and industry.