Optimal Matching Decision Of China's Processing Trade Industry Transfer

The processing trade industry in eastern China is in urgent need of transformation and upgrading,processing trade industry transfer is imperative.Current theories and research believe that factors such as labor force,science,education,industrial structure,transportation,and policies are important factors affecting the transfer and development of processing trade.This paper has combed the existing research,then clarified the role and mechanism of influencing factors and bilateral matching and analyzed the current status of processing trade in China.Afterwards,the influencing factors were tested through empirical tests and used as the basis for optimal bilateral matching.This paper first analyzes the mechanism of the five factors of labor force,science and education,industrial structure,transportation,and policy,and elaborates on the mechanism of bilateral matching methods.Among the influencing factors,labor endowment is the key to the transfer of processing trade.Transportation,technology,science,education,industrial structure,and policies are the main factors that influence the transfer of processing trade through export margin,production and transportation costs,industrial agglomeration and technological differences.In addition,the bilateral matching method can better simulate the needs of transfer and grounding of the processing trade industry during transfer,and simulate the two-way selection process accordingly to find a suitable transfer direction for the processing trade industry.Secondly,this paper studies the current trend of the transfer of China's processing trade,the mode of acceptance,and the transfer effectiveness and problems.The study found that the central region of China has become a transfer center and is now facing the west.Currently the transformation and upgrading of the eastern region are effective and there are four modes of undertaking in the central and western regions based on industrial parks and governments,including: "government subsidies + trade facilitation" mode,"endowment advantage + unified planning" mode,"transportation infrastructure + industry support" mode,and "excellent park + leading enterprise" mode.However,there are problems in regional competition,industrial structure and financial support.Thirdly,this paper empirically examines the factors affecting the development of processing trade,and finds that the main driving force for the transfer of processing trade in China is the labor force factor.Subsequently,this paper established an evaluation system based on empirical test results and established a bilateral matching model to find the optimal combination of processing trade industry transfer.The matching results in this paper show strong-strong united and strong-weak complementary features.It was found in this paper that the urban location and the comprehensive ability together decided the initiative of bilateral match and city's comprehensive strength and geographical distance have certain alternatives.In addition,the competition between cities in the same province was stronger and fostering cities' comprehensive strength advantage can optimize its matching portfolio.Differential support policies are conducive to the optimization of matching combinations,and the ones most affected by the diversity policies are cities with large geographic disadvantages.In the end,this paper proposes corresponding policy recommendations for the central and western regions governments based on the matching results.