The Theoretical And Empirical Research On The Factors Affecting Industrial Undertaking In The Western Region Of China

The implementation of the western development strategy indicates that regional economic development of our country has entered the stage of coordinated development full implementation and opened the prologue of undertake industrial transfer in the western region.Affected by factors such as labor cost rising, some industries of the eastern region begun to transfer under the market mechanism. China is currently in the three industrial transfer phases,from developed countries to the east, from the east to the central and western, from the metropolitan circle/city center to the edge of the area. In recent years, the government constantly increase the support of industry transfer, and under the action of government and market mechanism, researching the western region as an important undertake whether have a certain achievements, and exploring the elements costs and other factors about industrial transfer, which is significant to adjust the industrial undertaking policy and optimize the industrial layout.According to Krugman's Core-Periphery Model, An Husen's industry diffusion, industry agglomeration and structure evolution theory as well as firm theory in western economics,and premised on the basis of "three effect" and "two kinds of forces", to analyze industrial undertaking mechanism under the action of unbalanced force. And using two-digit manufacturing industries data and selecting the method of the share of gross industrial output value changes to measure industrial undertaking in the two periods of 1999-2010 and2011-2014 in the western region of China, to realize the situation of undertake industrial transfer in the western region. And analyzing the affecting factors about industrial transfer such as labor costs, other new economic geography factors, and economic policy by building regression model of double factors of panel data. The research showed that: Industrial transfer is apparent in the east, central, west, and northeast of China Since 1999, large scale manufacturing industry is roll-out from the eastern region, other regions have different degrees of undertaking industrial transfer, which indicated that large-scale industrial transfer has occurred, but mainly from the eastern region into the nearby central region, the western region to undertake industrial transfer scale is relatively small, and undertake industrial level is relatively low. In addition, through the empirical research on the industry of the western region to undertake empirical research on the factors affecting industrial undertaking in the western region found that labor price as a cost factor close positively correlate with industrialundertaking, probably because the industry transfer sensitive weaken of labor price and strengthen the quality of the labor force, skills. The relatively low wages in the west led to the outflow of local talents, an appropriate raise wages in favor of retaining local labor and attract foreign talent into, which promote the transfer of the industry. Human capital, traffic conditions, factor cost, externality, openness and the degree of fiscal decentralization have different degrees of influence of the western regions to undertake industrial transfer.