Industrial Agglomeration,Labor Mobility,And Industrial Transfer

As the city diseases such as the rising of labor costs, slow growth in real wages, high land rent and environment pollution cause the congestion cost increasing sharply,It becomes an irresistible trend to transfer manufacturing industry from the east to the Midwest. In January 2010, China set up the first Regional planning at the national level to undertake the industrial transfer. In September 2010, the state council issued "the guidance on the central and western regions to undertake industry shift". Although the Chinese government has issued a series of policies addressing improving the institutional environment,the transfer is not as successful as people expected.There are lots of resistances and the regional cohesion appeared in the industrial transfer. The object of this thesis is to study the manufacturing industrial transfer of eastern China and discuss mechanism of the industrial agglomeration and labor mobility based on current literature and research.Industry transfer has become an important task under the background of the current industry transformation and upgrading. Labor mobility, industrial agglomeration is always seen as the main influencing factors of industrial transfer by most scholars.These opinions provide a theoretical reference and form the logical starting point for this study. However, according to the findings by reading the previous literature, most related research are limited to the theoretical analysis and merely present the characteristics of ―Reality description", which lacks of empirical analysis by using relevant data based on the labor migration and industrial concentration.Therefore, this study selects related data of manufacturing industry of ten provinces and cities in east China to make a detailed and empirical analysis.This study also discusses the strategic direction and countermeasures of the industrial transfer,through revealing the essential connotation and relationship between industrial agglomeration, labor mobility and industrial transfer.This paper starts with the delay of eastern industrial transfer, then summarizes influencing mechanism and research achievements of how industrial agglomeration and labor mobility impacts on the industry transfer, and combs the related theories of Industrial agglomeration, labor mobility and industrial transfer, through paying attention to the direction of the related research, collecting and organizing the literature. Besides that, based on industry economics, development economics and regional economics related theories, this paper also builds the theoretical framework of this article. This study analyzed the status and problems of the current manufacturing industry shift in east China by using location entropy, labor productivity, industrial gradient coefficient index, combining qualitative methods(literature review method) and quantitative methods(Eviews econometric analysis method). Finally, this study analyzes the industrial agglomeration, the effects on industrial transfer of Labor mobility in east China by using panel data model and provides the corresponding policy suggestions.In general, this paper enriches and further advances the related research in the field of industrial transfer. On the one hand, it discussed the sustainable development of the manufacturing industry in our country and provides an applicable theory of industry transfer policy. On the other hand, this paper combs the thoughts of industrial structure adjustment and upgrade and optimization, and then it is able to guide China’s regional economic coordinated development.From the micro and macro perspectives, combining theoretical and empirical perspectives, this paper further analyzes the mechanism that industry agglomeration, labor mobility impact on manufacturing industry shift in east China. By revealing the essence and dynamic relationship of Industrial agglomeration, labor mobility and industrial transfer, this study discusses the future strategic direction of industrial transfer of manufacturing industry in eastern China. In addition to that, this paper presents the specific policy recommendations on account of different provinces(cities) in east China by different levels,sections and steps.The main conclusions of this article are as follows.1. The main causes of industrial transfer delay are the "lock-in effect" and "polarization effect" of industrial agglomeration. The improvement of location quotient of manufacturing industry in east China can increase industrial gradient coefficient, which can form the industry transfer viscidity, and finally is adverse to promoting industrial transfer.2. The greater the labor supply, the stronger the power of industrial transfer. Due to the high degree of industrial concentration of manufacturing industry in east China’s, the cost of labor mobility will significantly affect the industrial transfer. Because the increasing number of eastern manufacturing labor supply, it makes the cost of workforce flow in this region lower given the satisfaction level of wages, and in the long run, labor will tend to flow out of this region.3. Higher labor productivity further delays the manufacturing industrial shift. Though the labor productivity has no remarkable effects as input amount of labor force and location quotient; labor productivity in the eastern region staying at a high level do exacerbate and solidify industrial transfer adhesiveness. Labor elements combined with other factors of production in eastern region, on the one hand, makes the labor force to meet the needs of expanded reproduction in eastern region; on the other hand, relying on large supply of labor force, other factors of production such as capital, completes the accumulation rapidly, and finally, the strengthens the high gradient of manufacturing in eastern area.4. Eastern industrial transfer in different provinces has different situations. The overall industrial gradient coefficient of Beijing, Tianjin, Hebei and Hainan province(municipality) is low. However, this number of Jiangsu and Guangdong province is high. This evidence shows that the power of manufacturing industrial transfer in these four provinces(municipalities) is stronger. Because of that, there is feasibility to promote the industrial transfer in these four provinces(municipalities). In addition, industrial gradient coefficient of Shanghai, Shandong, Zhejiang and Fujian province(municipality) is relative to the middle as a whole. The possibility and feasibility of manufacturing industry shift in Shanghai and Fujian is high. However, though there is feasibility of industrial transfer in Shandong and Zhejiang province, it is still difficult and slow when it is put into practice.Finally, the article suggests promoting the optimization and upgrading of industrial structure in eastern Region, leading the labor mobility reasonably and encouraging in-place employment; it also proposes to pay attention to industrial agglomeration platform construction in undertaking place and provide good soft environment for industrial transfer; besides, it suggests that the determination of the industry transfer order in eastern provinces should be according to industrial gradient.