Abstract:This dissertation first conducts quantitative analyses of the impact of regional protectionism on industrial transfer, under the Cournot and monopoly model respectively. It goes on exploring the occurrence of regional protectionism through a governor’s objective utility function that combines social welfare and political promotion. Furthermore, the passage takes regional competition into consideration and makes out its effects on industrial transfer. By allowing the marginal cost of the products of the region that successfully introduces industrial transfer to fall, or Arrow’s famous learning by doing theory, we can see an increase in both the possibilities of industrial transfer and political promotion as well as local social welfare. At last, the changes of local welfare are fully analyzed. We find that wherever regional competition fosters industrial transfer, it also improves the absolute and relative social welfare of that region.