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The Influence of the Industrial Convergence to Transformation of Economic Structure:Theoretical and Empirical Research

Author: ZhaoXinHua
Tutor: LiBin
School: Hunan University
Course: Applied Economics
Keywords: Industrial Convergence Economic Structure Transformation IndustrialStructure Factor Structure Demand Structure
CLC: F124
Type: PhD thesis
Year: 2014
Downloads: 109
Quote: 0
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Since China’s reform and opening up, Chinese economy average close to10%a year growth speed rapid development, has created a miracle in world economic history. But the rapid industrialization and urbanization lead to serious unbalance of economic development and the excessive consumption of resources and environment. National twelfth five-year "planning outline" clearly pointed out:"the economic development of our country exists the resources and environment strengthen, the imbalance between investment and consumption, the income distribution gap is bigger, technology innovation ability is not strong, the unreasonable industrial structure, urban and rural regional development not harmonious, the employment pressure problem and total structural contradictions co-exist." As a result, the transformation of economic development patterns, especially the transformation of economic structure become the key problems needed to resolve."Outline" put forward expanding domestic demand as a long-term mechanism, and put forward the general line of transformation of economic development patterns, that is promoting the strategic emerging industries, speeding up the development of service industry to promote economic growth to rely on the first, second, third industry together to drive change and promoting regional benign interaction and coordinated development. And industry convergence as a new economic activity, it can effectively promote industrial technology innovation, form new competition relations, reduce business operating costs and improve efficiency, so it is one of the most efficient paths to promote the transformation of the economic structure. Therefore, study the influence of the industrial convergence to the transformation of China’s economic structure is of great practical significance. However, existing literature study of industrial convergence and the economic structure much only study the phenomenon of industrial convergence, or only the importance of the economic structure transformation, and there are few literatures combined industry integration and the economic structure, even though a few scholars analyzes the impact on the convergence of industrial structure, but there is not enough research into it, and at the same time from the perspective of empirical analysis to study the industrial convergence to the transformation of economic structure has little. This article is trying to make up for these deficiencies. Based on the related theories of both at home and abroad about industrial convergence and the economic structure transformation, this paper will respectively analysis the affect the mechanism of industrial convergence action to the transformation of industrial structure, element structure, demand structure transformation, and through empirical analysis respectively to examine the effects of the mechanism action, with its reveals the importance of industrial convergence in the economic structure transformation.At first, this paper based on input-output analysis model of the direct consumption coefficient and demand coefficient, influence coefficient and sense degree coefficient to measure industry convergence level, and select such as convergence of the high and new technology industry, producer services and information industry to reflect the industrial convergence. Through the analysis found that service industry under the leading of industry convergence level is low, especially had the lowest levels of producer services and information services, and the convergence of service industry with the first and second industry is low, and service knowledge technology intensive services relative to the traditional service industry convergence level is low; Manufacturing industry dominated convergence level is generally low, industrial convergence of technology-intensive manufacturing is lower than the labor-intensive and capital-intensive manufacturing, manufacturing and service industries have not formed interaction fusion; The industry convergence of across china interval has obvious difference. East industry convergence level is higher, and the Midwest industry convergence level is low.Secondly, through the analysis of the current situation of the industrial structure, and build the mathematical function model to analyze the effect of the industrial convergence to industrial structure transformation, and at the same time using panel data econometric analysis method to empirical test the impact on the industrial convergence to the transformation of industrial structure. Research found that:at present our country industrial structure present serious unreasonable phenomena, such as imbalance among three industrial sectors and industries structure distribution is not reasonable; Convergence of producer services promote China’s industrial structure transformation; Hi-tech industry convergence has an adverse effect on country industrial structure transformation; Direct convergence of information industry is conducive to China’s industrial structure transformation, and the completely convergence is bad for our country industrial structure transformation, the main reason is that the information industry convergence and the tertiary industry convergence is lower than the second industry; Between income level and industrial structure transformation presents "U" type curve relation and opening to the outside world, government spending increase the level of industrial structure transformation in our country.Again, through researching to the industrial convergence and transformation of factor structure found that capital deepening in recent years in China, the contribution rate of capital to economic growth increases, while the contribution of labor and technology rate declined year by year. Labor force transfer from primary industry to the second and third industry, but more to traditional industry and modern technology intensive industries increase small. Investment in fixed assets mainly flows into the manufacturing industry, the real estate industry and other industries, and less investment in modern service industry; Producer services convergence and information industry convergence are both significant impact on employment structure of our country, they can effectively promote the labor force transfer from the primary industry and second industry to tertiary industry, and the hi-tech industry convergence effect on labor force structure was not significant; Industrial convergence have a significant role in promoting capital structure and capital deepening, namely industrial convergence would lead to capital transfer to the third industry, and promote the development of our country change form the labor-intensive to capital intensive development mode; Industrial convergence is conducive to significantly increase China’s total factor of birth rate, the producer services convergence and information industry convergence impact on technical efficiency improvement is larger, high and new technology industry convergence have bigger influence on the technological progress; Level of marketization and human capital and research have certain promoting effect on structure transformation.Then, through to research the relationship between the industrial convergence and demand structure transformation found that:demand structure exists serious imbalance in our country, main aspect is the final consumption rate is falling, and rate of capital formation is rising and eventually over the final consumption rate. Residents consumption has inadequate and has a downward trend, but the proportion of government spending has constantly increase; Industrial convergence is beneficial to increase the rate of final consumption demand in China, reduced investment demand rate; Convergence of producer services promote the rate of net exports, and the high and new technology industry convergence and the information industry convergence have negative effects on rate of net exports; Industrial convergence can effectively improve the residents consumption rate, pull China’s domestic demand, reduce external dependence.Finally, through dynamic econometric analysis relation between the industry convergence and industrial structure found that:there has a long-term equilibrium relationship between the industry convergence to industrial structure, employment structure, capital structure, energy structure and regional economic structure, industry convergence can effectively promote economic structure transformation in our country, but in the short term there are still some unreasonable negative influence; Industrial convergence is conducive to industrial employment structure, capital structure and energy structure transformation, industry convergence has promoting to technology intensive industry, and it is greater than the capital intensive industry and labor intensive industry; Science and technology innovation level, environmental regulation, and ownership structure factors is conducive to our country industrial structure transformation.Contribution of this paper is mainly manifested in the following several aspects: first, based on the direct consumption coefficient and demand coefficient and sense degree coefficient, influence coefficient of the input-output analysis method, and using industry convergence of the high and new technology industry, productive service industry, information industry of our country to comprehensive analysis the current situation of industry convergence; Secondly, this paper constructs a theory mathematical analysis model of the industrial convergence to the industrial structure transformation, element structure and demand structure effect, analyzed the impact of industrial convergence to the transformation of economic structure; Finally, this paper uses multiple indicators from different aspects to measurement the transformation of economic structure, and uses a variety of econometric model to empirical test the effect of industrial convergence to economic structure transformation in our country, relative to the existing literature this has more realistic significance.

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