Research On The Enhancement Mechanism Of Added-Values Of Chinese Construction Industry

The Chinese construction industry has become a pillar industry of national economy. Although it is constantly developing with the country's economic construction and social progress, the current profit rate of the output value of China's construction industry is very low. Especially its self value-added capabilities are limited and the added value rate is decreased year by year. Therefore, the research on how to effectively improve the added value of the construction industry, so as to promote its healthy and sustainable development is important. In this paper theoretical analysis and empirical research, qualitative and quantitative analyses are combined. The integrated use of multi-disciplinary knowledge of management, economics, systems science is to make in-depth research on the enhancement mechanism of the added value of China's construction industry.In the paper, the status quo of the research on the industrial added value is under comprehensive and in-depth analysis. It probes the deficiency in the research filed of added valude of the construction industry. Through the essence of added value of the construction industry and the intensional and extensional enhancement, it clearly defines the theoretical basis of added value of the construction industry. It is to say, through enhancing the quality of the internal connotation of the construction industry, the "quality" and "quantity" of the construction output is therefore increased. This is a content-type enhancement principle of the industry. Also through the enhancement of external influence, it "drives" the upstream related industries and "pushes" the development of downstream construction related industries. This is the extensional enhancement theory of the added value of the construction industry. Meanwhile based on the synergy between the two theories, a enhancement mechanism model of the added value of the construction industry is built up.It describes the tracks of the development of the construction industry and the theoretical goals and the current status quo of the added value of the construction industry of different periods. It systematically analyzes the relations between the industrial internal and external development and added value enhancement. On the one hand, from the perspective of internal logic of industrial development the macro analysis of the different contributions of the economic growth of the construction industry from 1996 to 2005 to the added value enhancement is made; the microscopic study of the direct and indirect impacts of production factors of the construction industry on the added value from 1996 to 2007 is done. On the other hand, from the static point of view starting from the outside of the industrial development, it analyzes the production coupling mode between the construction industry and the upstream and downstream development related industries and its influence on the added value enhancement; from the dynamic point of view, it analyzes the impact of the construction industry between 1996 and 2007 on the development of the upstream and downstream related industries.Based on the division evolutional cycle stages of intensional and extensional enhancement of the added value of the construction industry, it clearly defines the meanings of different enhancement stages, their main features and the definition basis. It analyzes the stimulative functions of"innovation"as the internal driving force and"game"as the external driving force to the intensional and extensional enhancement evolution of the construction industry. It argues respectively the functional mechanism of the industrial internal intensional qualities and external influence on the intensional and extensional enhancement process of the added value of the construction industry, and the main features shown in the enhancement process. Finally the position of China's construction industry in the intensional and extensional enhancement stages is defined by data envelopment analysis, co-integration analysis, and Granger causality test method.After confirming the current position of China's construction industry in the model of added value enhancement, it analyzes and confirms the most ideal route to enhance the added value of the construction industry. Therefore, it puts forward specific measures of the intensional and extensional enhancement of the added value of the construction industry.