Research On Financial And Tax Policies Supporiting China's Industry Upgrading

Since the reform and opening, China's industrial development has gone through the recovery period, the adjustment period, the fluctuation period, and the leap period. China's industrial development mode has undergone the three phases of the "heavy industry of planned economy mode", the "balanced development of market economy mode", and the "heavy industry leading mode in the emerging industry drive". From the demand point of view, this paper is based on correlative theories and China's industry conditions, uses lots of research harvest for reference at home and abroad, does much research on the financial and tax policies supporting China's industry upgrading, and tries to go deeper into the condition of China's industry development, and to put forward suggestions.This paper is composed of three parts that are the introduction, the text and the conclusion, and has over 100,000 words.In the introduction part, the paper explains the reasons of choosing this topic and the research significance, briefly reviews the research condition of this topic, introduces the research thoughts and basic framework, explain the research methods, and states the new ideas and weakness of this paper,The text has 6 parts:The first part is about the principles in which the demand decides industry upgrading. From the micro point of view on demand, this part analyses the basic theory of industry upgrading, and from 3 aspects discusses the relations between demand and industry upgrading. The 3 aspects include:the relation between elasticity of demand curve and industry upgrading, the relation between the relative—stationary demand and industry upgrading, and the relation between the mobile demand and industry upgrading,The second part is about the test of impact from demand to industry upgrading. This part is the empirical test to the theory in the first part. Based on historical data, from the elasticity of demand curve, the relative—stationary demand, and the mobile demand point of view, this part tests the pattern and result of the impact of demand to industry upgrading.The third part compares the modes of industry upgrading in foreign countries. By comparing the "competition protection mode" and the "competitiveness protection mode" in the USA, the "mode intensive in heavy and chemical industry" and the "mode intensive in knowledge" in Japan, and the "mode led by heavy industry" and the "mode led by high-tech", this part reaches important enlightenments on pushing forward China's industry upgrading.The fourth part analyses the evolution of China's industry upgrading. This part reviews China's industry development after the establishment of our country, analyses the overall trend of China's industry development, discusses the main factors affecting industry development, and concludes the evolution of China's industry upgrading.The fifth part is the analysis from the demand point of view on the status of China's industry development. By the qualitative and the quantitative analysis, based on the features of different industries, this part divides industry into heavy industry, energy industry, and light industry. According to China's industrial and economic data from 1990 to 2008, this part reaches the demand models in China's metallurgy industry, chemical industry, machinery industry, oil industry, textile industry, and food industry, and based on the result from the econometric models, analyses development status in all the industries.The sixth part is the financial and tax policies supporting China's industry upgrading. After analyzing the basic principles of financial and tax policies supporting China's industry upgrading, this part puts forward the reform direction of the financial and tax policies, and discusses the financial and tax policies supporting heavy industry, energy industry, and light industry.The conclusion concludes the paper, and reviews the whole research.The innovation of this paper: from the micro point of view, this paper analyses the basic theory of the impact from demand to industry upgrading, tests the theory, by using demand model discusses China's industry development status, and puts forward the financial and tax policies supporting China's industry upgrading.The weaknesses of this paper:First of all, although demand is an important determinant of industry upgrading, there are other determinants that may have impacts. This paper focuses on the research of the relation of demand and industry upgrading, but ignores the influence that other determinants caused.Second, this paper tests the basic theory of the impact from demand to industry upgrading, but this paper is based on America's economic data from 1984 to 2009, and only shows industries with significant result. So there are industries with non significant result, which fail to reflect the data features that follow the basic theory.Third, in the empirical analysis of China's industry development status, this paper focuses on the domestic market, and ignores the impact of the foreign market.