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Value-added Rates of Industries

Author: SongZheWen
Tutor: TangHao
School: Shanghai University
Course: Industrial Economics
Keywords: Value-added rates Industrial structure Industrial technology Varying coefficient panel data model
CLC: F414
Type: Master's thesis
Year: 2012
Downloads: 19
Quote: 0
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Abstract


Value-added is that based on original value of the product, the new value wascreated by effective work in the production process, that is the new value attached tothe original value of the product. Value-added rate is the proportion of the addedvalue and total output and higher value-added rate means higher value-added."TheTwelfth Five-Year Plan" put forward the goal of industrial value-added rateincreased by two basic points, making it so necessary to make research onmanufacturing value-added rate.The research collected six countries’ manufacturing industry value-added ratesdata and the data processing results describe the evolution and current situation oftheir manufacturing value-added rates. Statistics results show that the descendingorder of the value-added rates of manufacturing sector is the United States, Japan,the United Kingdom, Germany, China and India, and almost all countries’ overallnational value-added rates have a downward trend, the extend of ups and downs ofthe six national manufacturing industry value-added rates are extremely different.Countries’ key industries value-added rates sort of total manufacturing value-addedrate of industry value-added rate is almost the same, while the trend was not thesame. Meanwhile, the statistical description over the last decade shows that China’smanufacturing value-added rate is relatively stable,72%of the industry’svalue-added rates increased slightly, and compared with the proportion in the addedvalue of the industry analysis we can found that a higher value-added rate, arelatively lower proportion of added value. On the contrary, a higher proportion ofthe added value of industry, the lower is the value-added rate.From a theoretical point of view, this article analyzes the division degree ofindustrial chain, industrial structure, industrial technology, branding andinternational industrial shift have impact on the manufacturing sector value-addedrate in five different levels. The empirical analysis focuses on two aspects. On onehand, it tries to figure out whether the value-added rate is a good illustration of theeconomic efficiency of enterprises or industries, and inspect the intrinsic relationshipbetween workers’ compensation and value-added rate. On the other hand, themarginal contribution of industrial technology to value-added rate in variousindustries is also a key issue. Based on the results above, we can came to theconclusion that industrial technology is the most important to improve China’smanufacturing value-added rate and recommend that depend on China’s nationalconditions, we should put emphasis on accelerating the development of high-techindustries, and focusing on the development of ability on designing and R&Dcapabilities.

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