Regional Transference of China’s Manufacturing Exports: A Theoretical and Empirical Analysis

In recent years, China's manufacturing exports have shown signs of shifting from eastern region to central region. Through establishing a domestic two-region model to theoretically analyze regional transference of manufacturing exports, it comes to a conclusion that the relative change of regional productivity is the fundamental reason but not the difference in factor prices. The theory is empirically tested by using the data between 2013 and 2016, and the result is basically consistent with the theoretical analysis. The empirical results show that regional relative productivity has a significant impact on the regional export share, while regional wage disparities do not affect export share. However, higher housing prices have a negative impact on export share. Localities should attach importance to promoting the development of productivity, adjust and control unreasonable factors of housing prices instead of paying too much attention to labor costs.