Research On How Does The Industry Transfer Have Influence On Different Regions' Technical Efficiency

Eastern region attracted many developed countries to invest there because of its excellent locations and favorable policies since China began to carry out the reform and opening policy.China's manufacturing has the advantages of labour and factor than others which helps China be the world's factory. The demand of resource and environment is increasing for the concentration of industry.The easten areas become more and more crowd which make the technical efficiency decrease. The shortage of land also encourage some enterprises to transfer to other places.Meanwhile, the industrial proportion of central and western areas is lower than the east significantly.Especially the proportion of western areas is always at a low leve. The process of industrialization is slowly which make its technical efficiency hard to improve.However western regions has a lot of resources and huge market potential which will attract some eastern enterprises to invest here.If some eastern enterprises who has lost the comparative advantage move to the west, the east will be less crowd and it will also promote the process of industrialization in the western region.It has been a long time since scholars started doing research on industry transfer,but there is a little research on how the industry transfer have influence on technical efficiency.The relative industry transfer will take place when the industry proportion of one province and the whole country have changed. This paper will study on industry transfer and technical efficiency base on China's thirty province's data from 1990 to 2011.First,we will figure out every province's technical efficiency every year from 1990 to 2011, using stochastic frontier production function model based on GDP,labor and capital.Then we set up a model of industry transfer and technical efficiency to explore relationship between them.The result shows that the technical efficiency of the east is higher than other places. The northwest is higher than middle part,and the west part's technical efficiency is the lowest.And the trend of technical efficiency seems to deteriorate.If a province is located in the east or middle part, it's industry proportion's increasing will deprave it's technical efficiency. If a province is located in the west, it's industry proportion's increasing will make it be more efficient. The rising of industry proportion will have different influence on different areas.If some effective measures were taken to transfer some enterprises which have lost advantages to the west, it will not only optimize the spatial allocation of resources at the national level,but also promote China's technical efficiency.