Industrial Policy Analysis of Restricted Development Zones in Western China– A Study of State-level Main Producing Areas of Agricultural Products and Key Ecological Functional Areas

Chen Ying＊

As one of the important policies of promoting the formation of main functional areas, the industrial policy directly determines the sustainable growth of space control ability of main functional areas. A restricted development zone is a type of main functional area which provides agricultural products and ecological products, assures the supply of national agricultural products and the stability of ecosystems, as well as safeguards the ecological functions and agricultural functions of wider regions by restricting its own development. Therefore scientific, complete and operable industrial policy support is needed. Restricted development zones are distributed widely in western China. With the restriction of their main functions, differential industrial policies should be implemented in the development of the restricted development zones: Dealing well with the relationship between industrial development and ecological protection, developing special industries which are friendly to resources and environment and appropriate for local conditions, guiding and encouraging industries to learn from regions with favorable development conditions, orderly withdrawing industries and enterprises adverse to main functions, facilitating industrial structure upgrading, optimizing industrial organization, improving industrial technological level and rationalizing industrial layout.

Western China; restricted development; main producing areas of agricultural products; key ecological functional areas; industrial policies

1. Introduction

The construction of main functional areas needs powerful supporting policies. The industrial policy is an important part of the supporting policies for main functional areas. The formulation, implementation and regulation of industrial policies is of great significance in promoting industrial development fitting main functional positioning, realizing the rationalization of regional industrial structure and coordinating regional development. According to the differences of regional resources and environmental carrying capacity, the industrial policies from the perspective of main functional areas conform to regional industrial policy principles, guide industrial development specifically, guarantee industrial option, industrial structure, industrial development patterns and industrial layouts tally with regional main functional positioning.[1]

Restricted development zones are the protective development zones for guaranteeing national food security and maintaining regional natural ecological functions. The development contents, ways and intensity are under restriction. But “restricted development” only limits the large-scale, intensive development of industrialization and urbanization, instead of limiting all development activities or restricting development. To keep the welfare of citizens in these zones growing in step with that of citizens in other regions, certain development should be maintained but the development scope, type and scale should be restricted to realize orderly exploitation and scientific development. As for the main producing areas of agricultural products, we should still encourage agricultural development and better protect agricultural comprehensive productivity. Regarding key ecological functional areas, we should continue to allow development of energy and mineral resources to some extent, allow development which does not influence their main functional positioning and development of special and advantageous industries accepted by local resources and environment capacity and better support the productivity of ecological products. Special regional features and assumed main functions determine that the state-level restricted development zones in western China especially need supporting policies. Also, scientific, complete and operable industrial policies should be applied for guidance to make industrial activities and space layout conform to main functional positioning, thus strengthening the endogenous power of economic growth and self-development ability.

2. Concept Defnition and Research Scope

Optimized development zones, major development zones, restricted development zones and prohibited development zones of the national main function division are divided on the basis of whether it is appropriate for their resources and environmental carrying capacity, existing intensity and development potential to carry out large-scale and intensive development of industrialization and urbanization. According to the division of development ways and contents, restricted development zones are divided into main producing areas of agricultural products and key ecological functional areas to provide agricultural products and ecological products respectively. The main producing areas of agricultural products also provide ecological products, service products and some industrial products. Key ecological functional areas also offer some agricultural products, service products and industrial products. The main producing areas of agricultural products of state-level restricted development are the important areas to guarantee security of agricultural product supply. They arealso beautiful homes for rural citizens to live happily and peacefully, and demonstration areas of new socialist countryside construction. National Main Functional Area Planning (hereinafter referred to as Planning) emphasizes that the main producing areas of agricultural products should regard strengthening the comprehensive productivity of agriculture as the primary task, protect ecology and develop nonagricultural industry under the condition that main functions are not negatively influenced. Large-scale and intensive development of industrialization and urbanization are restricted in the main producing areas of agricultural production to protect the cultivated lands with favorable agricultural development conditions so that all resources can be gathered to develop modern agriculture and constantly improve the comprehensive productivity of agriculture. Meanwhile, national policies strengthening agriculture and benefitting farmers can be implemented in the regions to guarantee the constant increase of famers’ income and improve rural environment. Key ecological functional areas of state-level restricted development refer to key areas to guarantee national ecological security and demonstration zones of harmonious existence between humans and nature where the ecosystems concerning the security of national or large-scale regions are in degradation. They can be divided into four categories, namely water conservation areas, soil and water conservation areas, wind prevention and sand fixation areas and biodiversity protection areas. The Planning requires key ecological functional areas to take it as the primary task to protect and repair ecological environment and strengthen the supply capability of ecological products, develop suitable industries without influencing main functional positioning in accordance with local conditions and guide overloaded population to realize orderly transfer gradually.[2]Restricted development regions are divided for the purpose of national overall development as well as sustainable development.

According to the Planning, the state-level main producing areas of agricultural products and key ecological functional areas in western China are widely distributed. In the agricultural strategic pattern of “Seven Districts and Twenty-three Belts,”among which three districts and nine belts are located in western China, namely the industrial belt in the main producing areas in the Yangtze River basin where agricultural products include high-quality rice, special wheat with good quality, high-quality cotton, rape oilseed, animal products, and aquatic products; high-quality special wheat belt in the main producing areas of agricultural products of the Hetao Irrigation District; highquality special wheat and high-quality cotton belt in the main producing areas of agricultural products of Gansu, and Xinjiang. In the “Two Barriers and Three Belts” ecological safety strategic pattern, two barriers and two belts are distributed in western China, namely the Tibet Plateau ecological barrier and Loess Plateau-Sichuan and Yunnan ecological barrier, sand prevention belt of northern China and hilly belt of southern China. In the Planning, there are 20 state-level key ecological functional areas in western China, accounting for 80% of the total in the whole country, covering 5 provinces in the west, 1 municipality directly under the Central Government, and 4 autonomous regions including 9 cities, 187 counties (including minority autonomous counties), 28 banners (a form of administrative division and organizational framework of the Manchu military), 2 districts and 1 town.[3]There are 6 districts of water conservation; the Greater Khingan Mountains and Lesser Khingan Mountains forest ecological functional area, Altai mountain forest and steppe ecological functional area, the Three-river-source region steppe, meadow and wetland ecological functional areas, Zoige steppe and wetland ecological functional area, GannanYellow River important water-supply ecological functional area and Qilianshan glacier and water conservation ecological functional area. The 3 districts of water and soil conservation are; Loess Plateau hills and gully water and soil conservation ecological functional area, Guangxi-Guizhou-Yuannan ecological functional area of karst rocky desertification prevention, and Three Gorges water and soil conservation ecological functional area. There are 6 districts of wind prevention and sand fixation type; Tarim River desertification control ecological functional area, Altyn-Tagn steppe desertification control ecological functional area, Hulunbeir Grassland meadow ecological functional area, Koerqin Grassland ecological functional area, Hunshandak desertification control ecological functional area and steppe ecological functional area at the north foot of Yinshan Mountain. Also 5 districts of biodiversity protection; Sichuan-Yunnan forest and biodiversity ecological functional area, Qinba biodiversity ecological functional area, southeast of Tibetan Plateau margin forest ecological functional area, northwest of Qiangtang Plateau desert ecological functional area, and the Wuling Mountain biodiversity and water and soil conservation ecological functional area.

3. Literature review

At present, academia has made some achievements in the research on the industrial policies of restricted development zones and the industrial policies of restricted development zones in western China.

Study of the industrial policies of restricted development zones. For example, the Research Group of Institute of Spatial Planning & Regional Economy, National Development and Reform Commission (2008) believed that compared to other regions and even ordinary underdeveloped areas, there were more restrictions and higher threshold for the industrial development of restricted development zones in an unequal competition environment. We should strengthen the support of regional ecological agriculture, ecological forestry, ecological tourism and renewable energy exploitation, promote the development of featured and advantageous industries without over-exploiting the local resources or exceeding the environmental carrying capacity to make contributions to the revenue of local governments and increase citizen employment.[4]Gao Yukun and Chen Juan (2008) thought that restricted development zones should give priority to the development of featured industries, restrict industrial expansion unfitting for the main functional positioning and prohibit the incompatible exploitation.[5]Jia Ruoxiang (2008) believed that restricted development zones should take the gradual promotion of industrial transformation and population transfer as the main task, promote industries with characteristic advantages and population to assemble in areas with favorable conditions by cohesion and migration pattern, strengthen policy support in eco-environmental protection, encourage industrial transformation and population transfer, as well as strive to improve the self-development capacity of restricted development zones. Meanwhile, considering that largescale industries and population cannot assemble in restricted development zones, we can explore the establishment of remote experimental plots of restricted development zones in ecological beneficiary regions, that is, some spaces can be divided as “industrial enclaves” for the development of restricted development zones in the ecological beneficiary regions suitable for large-scale aggregation of industries and population. He thought that such industrial development patterns can not only balance the interests between restricted development zones and ecological beneficiaryareas, but also realize the reasonable allocation of production factors.[6]Lin Jianhua and Ren Baoping (2009) considered that when making industrial layouts, restricted development zones should change traditional industrial cluster patterns centered on product manufacturing or the production supporting collaboration of product chains, establish new economic development modes of “natural resourcesproducts-renewable resources,” as well as guide the development of characteristic industry with ecological effect and economic effect.[7]Cai Yunfei believed (2011) that according to the resource superiority and industrial basic advantages of restricted development zones, we should enlarge and strengthen leading industries by extending the industrial chain of leading industries, form new patterns of regional leading industry polarization to drive and promote breakthrough developments in regional economies. Therefore, the central government should introduce supporting policies for the development of characteristic resources and leading industries in restricted development zones. Local policies should build interest compensation and coordination mechanisms of interregional resource and industry integration, as well as internal sharing mechanisms of leading industry cultivation and interest.[8]

There are researches on the industrial policies of restricted development zones in western China. For example, Cao Honghua et al (2008) believed that restricted development zones in western China should eliminate and transfer the industries unfitting for the national main functional positioning and meanwhile tap local advantages, actively distribute and develop characteristic industries with high ecological effect and economic effect.[9]Through the research of restricted development zones in Sichuan, Huang Yimin (2010) believed that the optimization of industrial structure of restricted development zones should actively develop tourism, properly develop the industries reflecting regional resource advantages and choose new types of industries with low consumption, low emissions and high benefits. As for industrial development scale, we should not pursue large-scale agglomeration development at the cost of destroying ecological environments. In industrial development space structure, we should not carry out sheet development but implement point development according to regional resources and environmental carrying capacities. Besides, we should develop characteristic husbandry but prevent overgrowing and over-grazing.[10]Based on the fact that the primary industry of restricted development zones in Yunnan Province occupied a large proportion of the area with a basically single industrial sector and a lagging tertiary industry, Zhang Xuebo (2007) put forward that in industrial organization, we should take government-leading function as the main way and restrict industrial space layout and industrial development speed. For industrial layout we should only allow point development in principle and transfer industrial sectors with great damage to environment from regions with fragile environmental conditions.[11]Through the research of restricted development zones in western China, Feng Cuiyue et al (2010) thought that the industrial policies of restricted development zones should be reflected as in industrial structure, utilizing transfer payment from the exchequer, support funds of ecological compensation and characteristic industries, implementing financial discounts, investment subsidy and revenue, selectively supporting and developing ecological agriculture, ecological breeding industry and tourism (or developing alternative industries). As for industries inconsistent with main functional positioning, we should establish assistance funds, set up smooth industry withdrawal and transfer mechanisms. In industrial technology, we should strengthen occupational education training, vigorously promote and apply high-tech and agriculturalpractical technology and in industrial organization and layout, we should facilitate industries to assemble in areas with favorable conditions through cohesion and migration patterns. Besides, we should actively explore “industrial enclave” development patterns and provide support from the perspective of system, mechanism and policy.[12]

From the existing literature, related theory and policy researches still have lots of research blanks and blind spots. The existing research results still need to be deepened and improved. The problems concerning restricted development zones include seldom discussing supporting policies and industrial policies, let alone discussion about western regions, which can only be seen in the literature about the restricted development zones of specific provinces, cities and districts as well as lacking overall and systematic policy measures targeting western regions. Therefore, this paper aims at evaluating the implementation effects of industrial policies of restricted development zones in western China. On this basis, this paper conforms to the regional principles of industrial policies and constructs a scientific, reasonable and customized industrial policy system framework according to the main functional positioning and development direction of state-level restricted development zones in western China, so as to provide policy reference for the development and enhanced self-development capacity of characteristic advantageous industries in western China.

4. Implementation Effect Evaluation of Industrial Policies of Restricted Development Zones in Western China

Since the development of western China was launched, the industries of characteristic advantages in western regions have been in active cultivation and development with the strong support of national industrial policies. A host of leading enterprises and well-known products have appeared and driven increases in residents’ income and government income. The resource advantage of the western regions is turning into an industrial advantage and economic advantage. Consequently, economic strength and self-development capacity has enhanced. Especially since the implementation of the “Eleventh Five-Year Plan,” China has carried out main functional area division, implemented differential industrial policies according to local conditions, as well as functional positioning and development direction of different areas, changed national integrated industrial policies, promoted the industrial structure optimization and regionaleconomic coordinated development of western regions. However, although China has set industrial policies of restricted development zones according to the differences of western regions, main functional area positioning and development direction, many problems continued during and after the implementation.

The development of western China

First, industrial policies failed to effectively guide regional industrial practice. The resource advantages of restricted development zones were not properly used. Regional leading industries remained to develop intensively. Industry chains need to be extended and there is still great improvement space for industrial added value.

Second, administrative division leads to lack of consistency during the implementation of industrial policies. There are two conditions. Since the same restricted development zones are under the jurisdiction of different administrative regions and the industrial policiesare jointly implemented by different administrative regions, it is hard to reach consistency of implementation. The industrial policy implementation of restricted development zones under the jurisdiction of different administrative regions has great differences.

Third, the division of labor coordination mechanism between regional industries and regional interest compensation mechanisms have not been established or failed to function effectively, which resulted in industrial convergence and disordered competition and caused great damage to resources and ecological environments.

Fourth, the application and coordination of industrial policies and other supporting policies is insufficient. Industrial policies fail to coordinate and mutually support policies of finance and taxation, investment, land, population, nation, environment and tackling climate change. The efficacy of industrial policies remains to be strengthened. Besides, many restricted development zones in western China not only enjoy the preferential policies of the development of western China, but also enjoy the policy of revitalizing old industrial bases and policies for supporting old revolutionary base areas and poverty-stricken areas. However, at present, the industry policy fails to be applied cooperatively or be given full play to the superimposed effects of policy.

Moreover, the industrial policies of state-level restricted development zones have not functioned sufficiently. From industrial structure, problems still exist like low industrial level, industrial structure convergence, and low relevancy degree between industry and regional economy. From industrial organization, problems like low industrial concentration, unreasonable structure of enterprise scale, low professional labor division and coordination, invalid entry barrier of some enterprises and most enterprises meeting high exit barrier have not been solved fundamentally. From industrial technology, technological equipment lags, technological and management level are low and product structure is unreasonable. From industrial layout, industrial layout is not reasonable, characteristic industries fail to realize cluster development, and industries and enterprises with great damage to resources and the environment have not withdrawn completely.

5. Frame Construction of Industrial Policies of Restricted Development Zones in Western China

5.1 General Idea of Industrial Policies

According to regional features and functional positioning, the industrial policies of restricted development zones in western China are formulated based on the principles of serving main functional positioning, giving full play to comparative advantage, facilitating coordinated development, and insisting on system design and market guidance.The general idea of industrial policies of restricted development zones in western China is: Guided by scientific outlook on development, we should conform to rules of industrial development. Under the guidance of national industrial policies, we should insist the priority be; moderate exploitation and development according to the main functional positioning and development direction of restricted development zones, emphasize resource conservation and environmental protection, deal with the relation between ecological protection and industrial development, develop characteristic industries beyond the resources and environmental carrying capacity according to local conditions, guide and encourage industries to assemble in the areas with favorable development conditions, orderly withdrawal of the industries and enterprises hindering main functions. Besides, we should accelerate the upgrading of industrial structure, optimize industrial organization, improve industrial technological level and rationalize industrial layout.

5.2 Priorities of Industrial Policies

The main functional positioning and development direction of restricted development zones determine that the resource development is controlled, industrial development is restricted, local fiscal revenues are constrained as well as the right of utilizing local resources to develop economy. It produces and creates “external benefits” by“internal” interests, and guarantees the ecological functions and agricultural functions by restricted development. Consequently, full consideration should be given to the facts that their development opportunities are lost and financial revenues are decreased due to reducing industrialization and urbanization development. Therefore, the research and implementation of industrial policy priorities should be accelerated.

(1) Establish interest compensation mechanism. First of all, we should build and improve long-term effective compensation mechanism. We should further increase special payment for ecological environment construction and agricultural production and explore how to build stable long-term effective mechanisms so that on one hand, the citizens in restricted development zones can gradually enjoy equalized basic public services, while on the other hand, we can combine the ecological environment construction with rural infrastructure construction, industrial development and increasing farmers’ income in restricted development zones.[13]We should strengthen the efforts of balance transfer payments of key ecological functional areas, set up special ecological benefit compensation funds disbursed directly from the central government and used for environmental protection and ecological restoration. We should further increase special food subsidies, construct and improve the interest compensation mechanisms for agricultural products main producing areas, including improving grain risk fund systems, grain safety funds, agricultural subsidy systems, government financial investment mechanisms and financial support mechanisms. Second, we should improve beneficiary compensation systems. In order to realize the internalization of ecological protection externality, truly reflect the ecological compensation principle of, “Those who benefit make compensation, those who cause destruction make recovery and those who cause pollution are responsible for treatment,” ecological protection beneficiary areas should adopt fund subsidies, target assistance and directional support to compensate the interest loss due to strengthening ecological environment protection in key ecological functional areas. Agricultural product beneficiary areas should make value compensation for the costs and losses paid by the main producing areas of agricultural products. Third, we should buildtax systems conducive to ecological protection and food production. We should expand the resource taxation scope in key ecological functional areas, regulate resource taxation modes, and carry out taxation according to reserves or price. Tax rate setting should sufficiently reflect resource scarcity. Meanwhile, we should raise the taxation standard of mineral resource compensation fees and internalize the ecological cost of resource exploitation.[14]Besides, we should put more emphasis on tax policy in the main producing areas of agricultural products, and scale up local revenue so as to enhance local financial strength.

(2) Set up support funds for special industry development. Except for ecological compensation and financial transfer payments, we should establish support funds for characteristic industries, build stable capital channels, and actively support and utilize western unique resources to cultivate and develop characteristic industries. We should explore and adopt financial discounts, investment subsidies, treasury bond funds, stocks and bonds to guide domestic and home financial agencies to provide preferential credit, and cultivate and develop characteristic industries.[15]

(3) Actively explore “industrial enclave” development patterns. Given that restricted development zones are not suitable for largescale agglomeration industries and population, we can explore the regional space replacement of the ecological functions of restricted development zones and industrial functions of key development zones, to set up an “industrial enclave” in the key development zones suitable for largescale agglomeration industries. Through active negotiation, restricted development zones and key development zones should create favorable environments for the “industrial enclave” in system, mechanism and policy. During the construction of an “industrial enclave,” the government should emphasize and solve the issues about resource integration, benefit distribution and industrial park construction between flying-in places and flying-out places to promote mutual benefits.

(4) Set up environmental standards for industrial access. We should reconstruct industrial development planning from the perspective of ecological environment protection, and strictly control all kinds of development activities in key ecological functional areas. The formulation of industrial policies must be based on the requirements of ecological environment policy, select one or more ecological industries capable of promoting ecological construction and protection to replace traditional arable farming and polluting industries and counteract the number of polluting industries by the increase of ecological industries. The selected industries should not only conform to local conditions, but also form related industry chains and have potential space capable of scale development to promote the development of relevant industries. The main producing areas of agricultural products should set industrial access environmental standards according to the requirements of protecting and recovering soil fertility. Besides, key ecological functional areas should build industrial access environmental standards according to the principles of ecological functional recovery and conservation.

(5) Strengthen ecological wealth production. Actually, ecological recovery and environmental protection in restricted development zones is the industrial economic behavior of producing ecological wealth. We should make full use of the resource advantages of restricted development zones and develop green ecological products actively. Moreover, we should establish authoritative, scientific and standard ecological marking certification systems, take ecological marking preferentially for the products fitting green ecological protection conditions so as to realize win-win ecological functions and industrial functions.[16]

5.3 Contents of industrial policies

According to the main functional positioning and development direction regulation, to improve industrial structure policy, industrial organization policy, industrial technology policy and industrial layout policy of restricted development zones of western China, we should effectively guide regions to form industrial systems with different features and advantages and promote industrial development to better meet the demands of western overall development and national long-term development.

(1) Industrial structure policy. Under the guidance of national industrial policies and according to the resource conditions and industrial foundation of restricted development zones of western China, we should selectively develop the characteristic industries with resource advantages and make them stronger by scale expansion and centralized development.[17]We should develop agriculture vigorously, especially develop the agricultural product processing industry and establish a batch of producing areas of agricultural and livestock products with scale advantages and regional features. We should encourage and support the main producing areas of agricultural products to intensively develop grain, cotton, oil plants, sugar plants and animal products, guide the equipment construction of processing, circulation and storage to assemble in advantageous producing areas, expand rural employment channels and increase incomes, prudently develop industrial skills, improve the existing industrial and enterprise production structures, as well as coordinate a balanced relationship between industrial development and ecological system maintenance.[18]On the premise of not causing damage to ecological systems, we can develop production and processing industries for tourism, agriculture, forestry, animal husbandry products, and agriculture sightseeing according to local conditions, and accelerate the development of commercial, tourism and other consumption service industries with obvious local advantages. Meanwhile, we should establish market exit mechanisms for the existing industries that are inconsistent with the main functional positioning of restricted development zones, we can promote industrial cross-regional transfers or closures by equipment depreciation allowances, equipment loan guarantees, migration subsidies and land replacement.[19]

(2) Industrial organization policy. We should carry out cluster promotion policies for characteristic industries, actively support characteristic industry clusters relying on unique resources, encourage localized innovation and business startups, attract external leading enterprises or core enterprises to make investments to drive and promote the development of characteristic industry clusters. Meanwhile, we should cultivate ecological agriculture leading enterprises, provide great guidance and investments in cultivating and popularizing wide variety, develop water-saving agriculture and organic fertilizer, actively support leading enterprises with strong industrial relevancy and driving influence, encourage enterprises to collect and convert resources locally, or collect and convert resources in different regions by way of combining regional enterprises and enterprises of key development areas, and optimized development areas and establishing enterprise groups. Besides, we should cancel regional barriers and accept the merger and reconstruction of local resource enterprises by domestic and home enterprise groups. According to practical conditions, we should encourage external enterprises to take over and reconstruct local small-scale and resourcebased enterprises with low environmental protection standards.[20]

Ecological agriculture

(3) Industrial technology policy. We should encourage enterprises to make technological selection and innovation in the aspects of enhancing resource collection and conversion efficiency, improving productive technology and reducing the damage to resource environment. We should ban backward technology and products with great damage to the environment, use clean production technology to transform traditional industries with high energy consumption and heavy pollution, support the development of high-tech industries with energy conservation and pollution reduction. Focusing on development and industrial and technological upgrades of characteristic industrial clusters, we should establish industrial technology innovation centers, strengthen labor technological training, cultivate and reserve talents of characteristic industries targeting the development demands of local characteristic industries. Meanwhile, we should facilitate advancements and innovation in agricultural science and technology, enhance agricultural material technology and equipment levels as well as improve agricultural disaster prevention and mitigation capability.

(4) Industrial layout policy. Industrial development needs to rely on the towns with strong resources and environmental carrying capacity to undertake centralized layout and strongpoint exploitation mode, properly control industrial land, as well as no longer newly build development zones or expand the existing industrial development zones. We should integrate the current industrial land, transform the existing industrial development zones into ecological industrial areas with low consumption, recycle, stressless emissions and“zero pollution.”[20]Through cohesion and external migration patterns, we can promote industries to assemble in areas with favorable conditions. In the regions suitable for proper development in restricted development zones, we should distribute characteristic industries based on the distribution and concentration degree of characteristic resources. Given that restricted development zones are not suitable for large-scale agglomeration industries and populations, we should continue to explore and carry out “industrial enclave” patterns. We should optimize agricultural production layout and variety structures, handle agricultural layout through scientifically determined agricultural development focused on different regions and form industrial belts with prominent advantages and distinctive characteristics. Besides, we should support the main producing areas of agricultural products relying onlocal resource advantages to develop an agricultural processing industry. According to the economic technology features of different agricultural processing industries, we should distribute appropriate industries in counties of the main producing areas of agricultural products through centralized layout and point development so as to avoid excessive consumption of cultivated land due to the decentralized development of non-agricultural industries.

(English editor: Jia Fengrong)

This paper has been translated and reprinted with the permission of Reform of Economic System, No.5, 2013.

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*Chen Ying, professor, Institute of Industrial Economics of Sichuan Academy of Social Sciences．

*Foundation item: the paper is the phased achievement of Projects of the National Social Science Foundation of China—“Study on the Supporting Policies in Limited Development Zones” (11BJL058) directed by the author．