Industry Association, Capital-output Ratio And Soft Input Contribution

The founding of New China, especially since the reform and opening up in 1978, China's economy has undergone enormous changes. From an agricultural and rural economy as the leading industry, the rapid development of newly industrialized countries complete an industrial category. From township enterprises and labor-intensive light industry, the development of the iron and steel smelting and electronic information manufacturing industry is characterized by capital-intensive and information technology.In the rapid development of industries, the question is how the efficiency of economic growth in the industries? In particular, the characteristic of the heavy industrialization since 2000, whether the development of heavy industry has efficiency support? Another important question is what factors affect the efficiency of the industrial sectors? The answer to the above two issues will be the main content of this paper, but also we understand China's industrial economy by an important way.Based on the above-mentioned two key issues, the paper first combeds the relevant research literature about the quality of economic development, and we particularly concern about the quality of economic development,such as capital-output ratio and contribution rate of soft input; Secondly, based on theoretical and empirical research literature of industrial economics, We present the concept of the association from the industrial space and non-space to find the key factors affecting industrial performance; Finally, we have to make some judgment about the efficiency of industrial development according to the analysis and verification process,and recommend how to further improve the efficiency of industrial economic development.By theoretical and empirical analysis, we found the following conclusions:(1) Industrial economic structure. The industrial economy has undergone profound and structural changes. The proportion of the total economy of the industrial output rose from less than 20% in 1953 to 43% in 2007; employment absorbed by the secondary industry accounted for total employment rose from 8.02% in 1953 to 26.79% in 2007, an increase of 2.34 times show that the industrial has become an important force for improving the structure of employment; Reform and opening up, the corporate nature of the earth-shaking changes, a significant decline in the proportion of state-owned and collective enterprises output value, at the same time non-public nature of the enterprise can flourish, from almost the beginning of reform and opening up to 0, the development of the proportion of nearly 68% (2007), back share and close to the beginning of 1953.(2) The contribution rate of soft input. The annual average contribution rate of soft input in the 1982-2007 are both negative, based on the calculation of input-output tables and the China Industrial Economic Statistical Yearbook. As a whole terms, the contribution rate of soft input based input-output tables is higher than the result of the China industrial Economy Statistical Yearbook data, the reason may be that the input-output table data covers a wider range of sample including higher production efficiency of small and medium enterprises.(3) The capital output ratio. To a certain extent, capital-output ratio in this century and the 1980s is lower than in the 1990s and means that capital productivity of the first two periods is higher than in the 1990s.Especially since 2000, the industrial sector has experienced significant capital deepening (capital per worker increased significantly), but the capital-output rate decreased significantly, and indicated that the trend of the heavy industrialization had been supported by solid economic efficiency.(4) Offshore outsourcing impact on productivity.By using the input—output table of China and in the calculation of various types of outsourcing, the outsourcing effects industrial productivity in the 1997-2007. The results show that the total outsourcing of industry level is the growth of certain extent from 1997 to 2002 and remains stable in 2002-2007, but the total outsourcing is decomposed, Lewis turning point and the arrival of industry heavy industry trends prompte the sharp rise of agriculture and mining outsourcing after 2002. Outsourcing effects the productivity from industrial, mining and manufacturing outsourcing, other outsourcing is not obvious. By contrast, foreign capital,non state-owned and small-sized industry outsourcing effect on the industrial productivity more active than domestic, state-owned and large and medium-sized industrial enterprises outsourcing. At the same time, for large and medium-sized industrial enterprises, industrial R & D and innovation outsourcing do not play a positive role on the industrial productivity.(5) Offshore and domestic intermediate inputs impact on productivity.In the calculation of various types of Intermediate Inputs, this paper analyses the effects of Intermediate Inputs on China's labor productivity of industry from the date on Chinese input-output tables. The results show that: Total Intermediate Inputs and four sub- Intermediate Inputs, such as Intermediate Inputs of offshore industries, Intermediate Inputs of offshore services, Intermediate Inputs of domestic industries and outsourcing of domestic services have a positive role on the productivity of industrial sectors, and the role of services Intermediate Inputs on productivity is significantly higher than industrial Intermediate Inputs; The employment effects of Intermediate Inputs shows that total Intermediate Inputs promotes jobs, and employment effects of Intermediate Inputs are from the industrial Intermediate Inputs, but services Intermediate Inputs deteriorates the environment of jobs;Intermediate Inputs not only promotes productivity, but also increases economic growth and employment.(6) The industrial association of the hidden economy impact on productivity. Using the currency demand method, this paper investigates the size of the hidden economy from 66 industries. The study finds that the tax burden has significant and positive effect on the hidden economy(added value and intermediate input). On this basis, the result shows that through the horizontal spillovers and vertical linkages(forward linkage) the hidden economy have negative effects on official economic productivity.