The impact of fiscal transfer payment on regional industry

Authors: Zhuoli Tan*,
Topics: Economic Geography
Keywords: restructuring of manufacturing industry, central government’s transfer payment, regional development gaps
Session Type: Paper
Day: 4/12/2018
Start / End Time: 8:00 AM / 9:40 AM
Room: Bourbon Room, Astor, Mezzanine
Presentation File: No File Uploaded


Since the year of 2000, the spatial framework of manufacturing industry had changed tremendously. In macro view, the manufacturing production of Eastern area had decreased a lot, but the manufacturing production of Midwestern and Northeastern area had increased greatly. Meanwhile, the development gap between Eastern and Midwestern area in the form of GDP had declined a lot. This research tried to find the impact of central government’s transfer payment on the restructuring of manufacturing industry in order to judge the effectiveness of central government’s transfer payment which aims at declining development gap between different regions.On the whole, although central government’s transfer payment has a positive effect on the labor-intensive manufacturing industry to a certain degree, while the effect of labor-intensive manufacturing industry on leading the development of economy is limited and central government’s transfer payment has a negative effect on technology-intensive manufacturing industry which is the impetus of economy development. Therefore, the effect of declining regional development gap through performing the policy of central government’s transfer payment is non-significant and performing the policy of central government’s transfer payment is not the best solution to declining regional development gap.

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