Industrial transfer to regions refers to a phenomenon in which developed areas , in conformance with the change of competitive advan-tage, transfer part of their industrial production to developing areas by means of interregional direct investment.The essentials of regional industrial transfer are the changes of the structure of the divi-sion of labor , a phenomenon of geo -industrial mobility , and the core problem to be solved is how to achieve the optimal allocation of resources as well as promote an optimum labor division .As a common economic phenomenon in the process of development , the need for industrial transfer has appeared in our country .On the one hand , as the in -depth development of the east developed areas continues , there is a need for part of these traditional industries to exit , and to seek a new de-velopment space .On the other hand , due to the interwoven nature of the of vast territory , rich re-sources and different requirements , like capital , technology and talents requirements , the west minority areas are crying out for undertaking indus-trial transfer from east China to optimize its in-dustrial structure and achieve industrial upgrading . The feasibility to undertake such industry transfer is the key for seizing this opportunity for west minority regions.
Nowadays , many economic scholars , when they undertake research on regional economic de-velopment , mainly focus on regional advantages , disadvantages , opportunities and challenges using the method of a SWOT analysis .Here we also use this method to analyze the capacity of undertaking industrial transfer to the west minority regions . The advantages of undertaking an industrial trans-fer come from things such as natural resource ad-vantages , location advantages , and market advan-tages.The disadvantages are lack of performance with no niche superiority to attract foreign invest-ment from developed countries , and a weak indus-trial base as well as faint industrial support ability , poor labor quality , and serious brain drain .
An empirical analysis shows that the capacity for undertaking industrial transfers to the west minority areas is far behind other areas .However , this does not mean that there are no advantages to undertaking industrial transfers in these areas .We can make full use of the resource advantages and the relatively specialized geographical advantages in the west minority areas to develop industries with local characteristics , and in doing so finally realize a “leap -forward” development of the e-conomy in west minority areas .
First , we should increase investment in physi-cal capital heavily .The reality is that there is a weak economic foundation , and a serious develop-ment lag in west minority areas which demands more capital input . These regions in particular should now step up investment in infrastructure . This will create a good environment for undertaking industry which will in t attract more capital in-vestment, and eventually form a positive cycle .
Second , we should pay more attention to the accumulation of human capital . If we want to change fundamentally the environment of undertak-ing industrial transfers to the west minority are-as, the most important link is to attach great im-portance to the accumulation of human capital .In the first place , the accumulation of human capital helps to enhance the overall level of the laborer , not just to increase laborers ’ working proficiency;it will accelerate the shift from manual laborers to mental laborers.By doing so, it will then save the input of physical capital and labor capital , and it can also make up for the inadequacy of physical capital in west minority areas to a certain ex-tent .In the second place , the accumulation of la-bor capital can promote the progress of technology , while the technical progress may improve the rate of capital ret .This could result in a kind of“increasing ret effect”, which will eventually promote the rapid development of the economy in west minority areas, and change the economic growth mode from an extensive mode to an inten-sive mode .In the third place , the accumulation of human capital might improve the adverse environ-ment of undertaking industrial transfers in terms of attracting capital investment from different indus-tries with different levels of labor .Although the west minority areas cover a vast territory with a sparse population , the majority of local laborers have a low level of technology , which means that the west minority areas cannot just rely on large-scale formal education to cultivate senior talent , and finally realize labor capital accumulation .Mo-reover , because of the undeveloped economy , it is difficult to attract top talent to the west minority areas.As a consequence , adjusting measures to local conditions , such as training primary and sec-ondary talents by large -scale short-term training must be the best choice for west minority re-gions to achieve preliminary accumulation of hu-man capital .The agglomeration of primary and mid-level talents, coupled with the govment ’ s preferential policies for investment , will certainly attract enterprises from east coastal areas to en-ter the area .Consequently , the ability for west minority regions to undertake industrial transfers must be improved .
Third, we should reinforce the construction of a civilized environment .Poor environment , and a complex topography , coupled with the influence of human activity in west minority areas , will all lead to a deteriorating ecological environment which is fragile enough in itself .And now, there is nothing to do but to improve the ecological environ-ment in the west minority areas .This in t, can create better conditions for people ’ s lives, and improve the quality of life and the standard of living .This may eventually enhance the ability of undertaking industrial transfers to the west mi-nority areas.