A Study On The Development Of The Industry With International Competition Ability

In the era of the economic globalization, the most direct and important way of competition among countries is the competition of industry. China, which is called the"the factory of world", although the gross of the economy ranks the sixth in the world (2003), is rather weak in the aspects of the industry of the international competitiveness. The international competitiveness of the industry still lags behind other countries; industries which have high level of international competitiveness are few. Building the world-class industry which has the international competitiveness becomes a most urgent issue at the current time.From the data collected, both the development of the industry and the international competitiveness are academic research hotspots, But while it is rarely found in literature to combine them together. As an innovation of the study, this dissertation sets to combine the development of industry together with the international competitiveness.The research aim of this paper: first, to investigate into the law of the development of the industry with the international competitiveness; second, to examine the reasonable model of the development of the industry with the international competitiveness in China.As an innovation, this paper puts forward a model of industry development-Chariot Model in the kernel chapter (Chapter Sixth). The aim is not to supply a almighty model about industrial development and international competitiveness of industry, but to supply a view and thinking of explaining and analyzing questions, and attempt to put forward some questions which must be considered and many factors and possible choices which must be encountered when China decides the development of industry with international competitiveness in the future.This paper consists of seven chapters.The first chapter is introduction. In this chapter, the background of the selection, research aims, definition of the conceptions, basic viewpoints and research methods, innovation and questions to be resolved are briefly stated.The second chapter is a general statement about the theory of industry evolution.From the history of industry, evolution of industry is a dynamic course. According to industry life-cycle theory it could be divided into four stages, but the real process of evolution is complex. Industry life-cycle theory discovers the immanent law of single industry development to a certain extent. Evolution course of industrial structure is the concomitant of the economic growth and the outcome of a series of development imbalance. The sophistication of industrial structure and the rationalization are the main contents of industrial structure of optimization. Optimization of industrial structure is a course of market organization.In the third chapter, the theory of international competitiveness of industry is summarized systematically.From 1980s till now, several relatively perfect index systems of evaluation on the international competitiveness have already been formed by the foreign study. China's study on international competitiveness began in 1989, but the domestic study lacked nativism and theoretical innovation of realism. The viewpoints of foreign studies on the international competitiveness are inconsistent. About the application of methods of evaluation, the choice of index system, there are also debates and differences. The evaluation of industrial international competitiveness is a complex question involving many factors. We must evaluate China's international competitiveness of industry based on the situation of our country and our realities. When we found the industrial development model of international competitiveness, many factors must be considered.The fourth chapter is the demonstrative and empirical analysis and theoretic summarization of China's industries.From 1949 to 1978, China's industrial development made some mistakes. Thanks to industrial adjustment and development, inter-industrial and intra-industrial proportion has been improved obviously and international competitiveness of industry has been boosted up since 1979. From demonstrative analysis and international compare (Lv Mingyuan, 2005a), the evolution of our industrial structure not only conformed to the general law of the evolution of industrial structure, but also had its particularity from 1952 to 2003. The factors that affect evolution of our industrial structure mainly include system reform, demand, politics, resources endowment, etc. From the development, China's industrial theory of choice was an uninterrupted further and perfect course from 1978 to 2004. (Lv Mingyuan, 2005b), it was shown in such aspects as theory, methods of analysis, involved fields, degree of nativism, etc.In the fifth chapter, industrial development of several countries is analyzed demonstratively and reviewed.The experiments of several countries'industrial development show that many factors are their main reasons that they can succeed, such as institution and policy, market demand, technical innovation and resources endowments, etc.In Chapter 6, we put forward a model of industrial development- Chariot Model from the viewpoint of the international competitiveness,which is the core of the paper.No exiting theory can explain industrial development perfectly. In this chapter, from summarizing several conclusions of experimental studies and the experiment of industrial development in many countries, we believe that there are four main factors that affect international competitiveness of industrial development: resources endowment(tough support) ,institution and policy(soft support), and two pull factors,i.e. technical innovation and market demand.Regarding the four factors as precondition, we amend Porter's Diamond Model and construct a model of industrial development from the viewpoint of international competitiveness- Chariot Model. The development of industry with international competitiveness is a dynamic course, which is determined by the four variables of Chariot Model. By the combination of the four factors, industrial competitiveness can be changeable. An industry can retrogress from the advantage of competition to the disadvantage of competition, and also can change from the disadvantage of competition to the advantage of competition. This paper analyzes the function of the four factors of Chariot Model from the viewpoint of industrial development.Chapter 7 puts forward strategic suggestions based on the demonstrative analysis on China's international competitiveness of industries.Several methods of evaluation of international competitiveness of industry demonstrate that China's international competitiveness of industry has a great improvement. Labor- intensive industry is our important presentation of the advantage of international competitiveness, but China's international competitiveness of industry is still far behind other countries. The competitiveness of single industry is still weak. Independent innovation ability of industrial technology is not strong. High technology and high-valued industries are in the inferior position in the international competition. This chapter puts forward policy suggestion on China's development of industry with international competitiveness from institution, industrial policy, technical innovation, resources endowment and the revelation of life-cycle theory.