Will the Local Government Need to "Do Something" in the Industrial Transfer?——Based on the Development of the Model of Heterogeneity Enterprises

Based on the enterprise heterogeneity model,the paper study whether the government should" it is somewhat, do not be somewhat" in the process of the industry transfer,and bidirectional transfer in the enterprise transfer.This paper finds that:first,whether homogeneity or heterogeneity of enterprises assume,the home market effect(i.e.larger market will attract more than the proportion of enterprises)will be influence on the industry transfer;secondly,the bigger the cost difference,it will lead to more low - cost business move to larger market area,while more high cost company move to smaller market area;finally,the local market effect degree is non monotonic function about the quantity of low - cost enterprise: it first decreases,then increases,then decreases.Based on the theory,this paper promote the recommendations on the industry transfer policy that different regions local government(underdeveloped areas and developed areas).