The Impact Of Government Competition On Industrial Transfer

Since the beginning of the new century,in order to promote coordinated development in the region,the Chinese government has made a number of major national strategic decision-making adjustments to the balanced development of regional industries such as the "Western Development" strategy,the "Rise of Central China" project,the "revitalization of the eastern old industrial base","Village Rejuvenation" Strategy.The report of the 19 th NPC pointed out: At present,the major contradictions in our country have been transformed into the contradiction between the ever-growing need for a better life for people and the unbalanced development of imbalances.Among them,the imbalance in the development between regions is still outstanding.Industrial transfer has played a decisive role in promoting regional coordinated development.On the one hand,industrial transfer can promote industrial restructuring and promote industrial restructuring and upgrading.On the other hand,industrial transfer can optimize industrial distribution and eventually achieve balanced development in the region.However,in recent years,the wave of industrial transfer between the eastern,central and western regions of China has not reached people's expectations.The competition among local governments in the fields of land prices,tax incentives and project subsidies around the industrial transfer has become increasingly fierce.Under the administrative background of the tax-sharing system and the promotion of the game in our country,it is inevitable for the local government to compete on the industrial transfer.So what is the impact of the competitive game of the local government on industrial transfer? How can the government "act" in order to better realize the leading role of industrial transfer in promoting regional economic development?By analyzing the impact of competition from local governments on the transfer of industries to the scale of industrial transfer from the perspective of grounding government behavior game,and reveal the impact mechanism of local government competition on industrial transfer.Firstly,literature review method is used to clarify the ways and methods of government's influence on industrial transfer,and the process of local government's competition game;Second,qualitative analysis method is adopted to examine the international industrial transfer and domestic industrial transfer,as well as the Chinese government's behavior,we concluded that the government mainly influences the scale of industrial transfer through two main channels: taxation and improving the investment environment;again,the construction of the local government competition game mechanism model and the impact of local government competition on the industrial transfer mechanism model from the perspective of grounding government behavior game,which analyze the impact of the competitions that the local governments have adopted for the transfer of industries through taxation and improving the investment environment to the scale of industrial transfer,draw the following conclusions:(1)the competition for the local government to compete for the transfer of industry has a significant impact on the scale of regional industrial transfer,and the more intense the degree of competition,the greater the impact on the scale of regional industrial transfer;(2)The tax and investment environment is still an important factor influencing the choice of location of the company;(3)The tax burden on enterprises in the region is too high,which is not conducive to attracting industries from other regions;(4)The government's improvement of the investment environment in the region can attract more industries from other regions.Finally,a generalized differential GMM model was used to sample data from 1997 to 2016 in mainland China in addition to 31 provinces,autonomous regions,and municipalities directly,and empirical tests were conducted after the treatment of endogenous problems between local government competition and industrial transfer.Based on the findings of the previous studies,this paper the following policy recommendations are proposed:(1)In order to resolve the "vicious competition" that local governments may have in the process of competing for the transfer of industries,it is necessary to rationalize the conflict of interests between local governments in the process of industrial transfer;(2)In order to effectively guide the transfer of industries between regions,the government needs to determine a reasonable level of tax burden while improving the regional investment environment.