Regional Industrial Structure Change and Industrial Growth of China
L. Ka
2015
Citations
0
Citations
Journal
Economic Management Journal
Semantic Scholar
Key Takeaway Key Takeaway: China's regional industrial structure change and industrial growth interact each other, with structure change having a larger influence on industrial growth.
Abstract
Since the reform and opening up to the outside world,China s economy achieved amazing growth.At the same time,the industrial structure of China underwent an impressive and rapid change.It' s economy successfully achieved structural transition from light industry to Heavy and chemical industries.So it is very important to research the relationship between regional industrial structure change and industrial growth.Some researchers from home and abroad find that speed of structure change is important for industrial growth.Structural change can foster economic development and that growth depends on past structural change more closely than the other way round.Different structural patterns reflect differences in the utilization of technology and in the skill intensity of production methods,both of which affect labor productivity and export unit values.Structural change is not an end in itself.Adaptability and rapid structural change are essential for the competitiveness of the economy and its resilience to world-wide economic fluctuations.If the direction of structural change is misguided,or if its pace is too slow,the economy will stagnate.China has vast Land area and 31 provincial units.Each province has different conditions of economic development How to identifying the relationship between regional industrial structure change and industrial growth? In this paper our analysis will be based upon a data panel comprised of 31 provinces over a period from 1999 to 2012.We calculate correlation coefficient between industrial structure change and industrial growth of each year.Furthermore in order to attain information about the direction of causality,we calculated as follows.If growth is connected to past year's,as well as to concurrent year's speed of change,this indicates that the speed of change influences later growth If,on the other hand,speed of change is more closely related to past growth,this indicates that growth leads to changes.The calculation shows that China's regional industrial structure change on industrial growth can be expressed as such;regional industrial structure change and industrial growth interact each other,but structure change has relatively larger influences on industrial growth.So,in order to make the industrial growth maintains a certain activity,the necessary structural changes is needed.We also find that the changing range of Energy and raw material industry determine the range of the whole industrial change at the provincial level.And the energy and raw material industry and light industry,equipment manufacturing industry restrict each other in the course of growth.Generally speaking,decreasing the percentage of Energy and raw material industry in the total percentage of the whole industry tends to increase the rate of the whole industry growth and increasing the percentage of equipment manufacturing industry and light industry in the total percentage of the whole industry also tends to increase the rate of the whole industry growth.In order to speeding up the regional industrial growth,it is necessarily to rely on the development of equipment manufacturing industry and liight industry.The views above have a important enlightenment to the China's New Normal.In order to accelerate regional development,we should:(1) carrying moderate industrial structural adjustment is the basis of industrial growth;(2) making full use of new national regional development policy can provide new dynamic to the regional development;(3) it is very important to get rid of the control of Energy and raw material industry in the regional industrial development;(4)paying high attention to the development of equipment manufacturing industry and light industry in the regional industrial structural changes;(5)promoting high quality industries shifting to the west in the course of industrial transfer and avoid low level one is the key means to the development of the west region of china.