The Influence of the New Relationship between Political and Business on the Hi-Q Development of the Electronic Cigarette Industry in the Eastern Coastal Areas

The relation between political and business is a major social relationship nowadays, it is also an significant factor affecting the regional economic development. In 2016, the state leader has also proposed to build a new type of “close” and “cleaning” political and business relationship. Under the new normal, China’s economic development has changed from emphasis on increment to quality. In the Hi-Q development, real economy is the cornerstone of the overall economic. In recent years, as an emerging real economy, electronic cigarette industry has fast-paced in China. The upstream and downstream industrial chains are mainly concentrated in China’s eastern coastal areas, what follows is the rapid spreading of electronic cigarette stores. Thus, it is essential to probe the impact of the new political business relationship on the Hi-Q development of the electronic cigarette industry, exploring ways to improve the new political business relationship, to the extent that realize the Hi-Q development of it. This study uses the empirical analysis on the influence of the new political business relationship on the high-quality development of the electronic cigarette industry. In empirical analysis, the first process is to set up the index system of Hi-Q development level of the electronic cigarette industry combined with the new development concept, according to the data of the eastern coastal areas from 2011 to 2017, then use the entropy method to assess the Hi-Q development index of the electronic cigarette industry of eastern coastal provinces, and finally use the fixed effect panel model, select the government intervention as the core explanatory variable, select the corruption index and legal environment as the important explanatory variables and human capital as the controlled variables to implement empirical analysis on the influence of new political business relationship on the high-quality development of the electronic cigarette industry. The upshot demonstrate that new political business relationship can facilitate the Hi-Q development of the electronic cigarette industry effectively. As a result, the new political business relationship can effectively facilitate the high-quality development of the electronic cigarette industry.