Research On The Promotion Effect Of FDI On The Transfer Of Industrial Zone Within Zhujiang-Xijiang Economic Belt

With the implementation of the fourth wave of international industrial shifts,the shift of industries in eastern China to the central and western regions has gradually become the mainstream trend.the Pearl River-Xijiang economic belt also includes the eastern and western regions.This trend is particularly evident in the economic belt: On the one hand,the inefficient or low-cost industries in developed regions headed by Guangzhou City and Foshan City are gradually moving outward;The underdeveloped regions,mainly in Nanning,Liuzhou,and Zhuozhou,actively undertake industrial transfer in developed regions and accelerate local economic development.Foreign direct investment(FDI)has a significant impact on regional industry transfer and industrial distribution.In 2014,the State Council officially promulgated the “Pearl River-West River Economic Belt Development Plan”,marking the formal establishment of the Pearl River-Xijiang Economic Belt,policy support,and geographical advantages.the Pearl River-Xijiang Economic Belt will be the main influx of FDI for some time to come.However,FDI has different effects on industrial transfer in different regions,especially the difference between developed regions and underdeveloped regions.In particular,FDI as high-quality capital generally promotes industrial transfer in developed regions and helps underdeveloped regions to undertake industrial transfer,but this effect Not very clear.Therefore,analyzing the effects of FDI on industrial transfer in different regions of the Pearl River-Xijiang Economic Belt will help promote the transfer of industries in the region through FDI,improve the industrial layout in the Pearl River-Xijiang Economic Belt,narrow the regional economic gap,and increase the level of economic development in the region.,are of great significance.The theoretical relevance study believes that FDI has a different effect on industrial transfer between developed regions and underdeveloped regions,and its mechanism of action depends on the combined results of FDI spillover effects,market plunder effects,and market expansion effects.Specifically,on the one hand,FDI eliminates low-efficiency industries through competitive mechanisms,enhances overall industrial production efficiency,and reduces supply and demand prices to stimulate demand markets;on the other hand,FDI spillover effects and expanding market demand effects can drive upstream and downstream industry production scales..Therefore,the main contents of the article are as follows: This paper combs FDI location selection theory and industrial transfer theory from a fusion perspective and finds that FDI has potential links with industrial transfer,but the literature also shows that FDI has different effects on industrial transfer in developed and under-developed regions,depending on Whether the area has a certain "threshold" condition.Based on the above findings,first of all,11 cities in the Pearl River-Xijiang Economic Belt were divided into two levels of development and underdevelopment in order to make the results more scientifically.Secondly,using the panel data from the Pearl River-Xijiang economic belt from 1985 to 2015,it was proved that the effect of FDI on the transfer within the Pearl River-Xijiang economic belt within the industrial zone does exist.Then,through theoretical and empirical evidence,FDI promotes the transmission mechanism of industrial transfer in the Pearl River-Xijiang Economic Belt and its influencing factors.This paper collects panel data of 11 prefecture-level cities in the Pearl River-Xijiang Economic Belt,and mainly uses empirical methods such as principal component analysis and generalized least squares methods for empirical analysis.The empirical results show that FDI has a positive effect on the transfer of the Pearl River-Xijiang Economic Zone within the industrial zone.On this basis,it scientifically analyzes the problems existing in the underdeveloped regions of the Pearl River-Xijiang Economic Belt to use FDI to undertake industrial transfer in the region.Finally,related policy recommendations are proposed in order to use FDI to promote the rational distribution of the Pearl River-Xijiang Economic Zone and promote the coordinated development of the regional economy.