TITLE:
Research on the Productivity Effect of Inter-Regional Industry Transfer—Taking Guangdong Province as an Example
AUTHORS:
Li Liu
KEYWORDS:
Inter-Regional Industrial Transfer, Total Factor Productivity, Industrial Transfer Area, Industrial Undertaking Area
JOURNAL NAME:
Modern Economy,
Vol.10 No.8,
August
27,
2019
ABSTRACT: This paper empirically tests the influence of the inter-regional
industrial transfer policy which was promoted by local government in Guangdong Province
in 2005 on total factor productivity by using the double-difference and triple-difference models, based on the panel data
of 120 counties in 21 prefecture-level cities in Guangdong Province from 2001 to
2016. The study found that the inter-regional industrial transfer policy of Guangdong
Province has increased the total factor productivity of the area with industry transferring
out, but has a negative impact on the TFP of the land with industry transferring
in, and there are differences in the effects of total factor productivity in the
four regions: the periphery of the Pearl River Delta, Eastern Guangdong, Western
Guangdong, and Northern Guangdong. And the industrial transfer has the greatest
negative effect on the eastern Guangdong region, and the least negative effect on
the western Guangdong, which has a positive impact on the TFP in northern Guangdong.
Through further analysis of single factor
productivity, the study found that the decline in total factor productivity of the
industry is mainly caused by the decline in capital productivity. The experience
of inter-regional industrial transfer in Guangdong Province has implications for
China’s ascendant inter-regional industrial transfer. How to encourage the government
to play a more active guiding role in promoting industrial transfer, promote the
increase of total factor productivity and achieve sustainable and stable economic
development, is a question worthy of further discussion.