An Empirical Research On Chinese Manufacture Industry Development Path And Its Economic Effect In Open Economy

Since the reform and open policy, Chinese economy has experienced more than20 years continual high speed growth, and many researchers have carried out variousanalyses from different aspects to this kind of growth. However, Since Chineseeconomic growths associated with development and institutional transition at thesame time, and researches based on specific angle are favors to neglect the complexityof such kind of growth, therefore, it may fail to give full reveal to some economicphenomena inner link. For example, current researches have not given fairly treatmentto such questions as the co relational dependence between institutional transition andeconomic growth, institutional transition and economic development domesticdepartment and overseas department.Although a series of research indicated that Chinese economy growth hasexperienced the capital pushed excessively industrialization advancement, but mostanalyzes has not been able to walk far in this aspect, and failed to make furtheranalysis on economic growth path, its determining factors and economic effect underthis pattern. Therefore, we select the manufacturing industry sector, which plays animportant role in Chinese economic growth and industrialization, and analyze itsdevelopment path, influence factor and economic effect from middle Stratification.The paper aims to achieve follow purpose: (1) Reveal Chinese manufacturing industryway during industrialization courses from views of capital drive and technologyadvance. Since current researches have not give implicit reveals to this phenomena,our analysis may not only become an exporting research in this field, but also findsome new economic connections behind it. (2) Reflect the co relational connectionsbetween institutional transition and growth, institutional transition and developmentby way of development path analysis of manufacture sector and its influential factorand economic effect. Specifically, the paper aims to reveal the co relationalconnections between industrialization and binary structure, industrialization andeconomic growth by way of checkout the manufacturing industrial development patheconomic effect to economic growth and surplus labor migration, reveal the influencebetween institutional transition and industrialization by way of analyzing thedeviation developing route of manufacturing development path. (3)Give anendogenous explanation to FDI inflow from Chinese macro-economy demand, whichoriginate from the deviation between the disadvantageous economic effect ofmanufacture industrial sector and macro-economy growth demand. By such ways, the paper aims to reveal the complementary relationship of domestic sector and overseassector.Therefore, the paper applies economic growth theory, development economy andtransitional economy and relevance theory to our research, and utilizes the researchway of combination of theoretic induce and experience evidence, combination ofmodeling and positive analyses, and achieve following conclusions:(1) Achieves the development formula of economic growth and sector. Based onpast debate of determinant of economic growth, the paper set forth the innermechanism of economic growth, which is the trend that the economic growth maychange form Marx economic type to Kuznets economic growth type, and models thedevelopment path that manufacture sector develops from capital drive to technologydrive. It also advance that follows with the lifting of output increase and resourcesstructure, the drive factor tends to shift from capital to technology, such viewpointcoincides with the comparative advantage theory of development economic theorythat the leading industrial structure shifts from labor-intensive industry tocapital-intensive industry and then technology-intensive industry.(2) Reveals Chinese manufacture sector's development path form aspect ofcapital input and technology advance under above formula. The analysis indicates theoutput increase of Chinese manufacture sector displays a model of capital deepeningcharacteristic; meanwhile, the technology advance shows capital increasing type.Judging from the economic effect, such development route being harmful foremployment and migration of surplus labor, and being harmful to economicscontinues growth.(3) Brings forward the institutional origin that the deviation of manufacturedevelopment route, which is the need of transition lead to the finance institutionaldistortion. The capital deepening route of manufacture industry indicates capital costhas been warped in its development process, while it originates endogenous financeinstitutional arrangements. Because of such deviation is harmful to resource allocationand surplus labor migration, it reflects the adverse effects between institutionaltransition and dual economic structure transition, institutional transition and economicgrowth in essence. It also reflects the cost that institutional transition brings toeconomic growth and economic development in another aspect.(4) Brings forward the great quantity inflow of FDI originates from endogenousdemand of continuous growth under the deviation of domestic development route. The deviation between disadvantage economy effect and economic growth lead to theexceeding demand to FDI, the inflow of large amount of FDI to Chinesemanufacturing industry has reflected such need exactly. The remarkable role of FDI insucking employment, technology transition and economic growth has made up theinherent defect of manufacturing industry, and then reflects the co relationalconnections between institutional transition and domestic development, the domesticsector development and abroad sector.(5)Advances relational counter measures from view of finance market reform,technology selection of manufacture industry and abroad capital management.Chinese economic growth dependent on full and sound development of domesticsector ultimately, hence, eliminate the distortion of financial system become the coreof relevance policy, while the technology selection during manufacture developmentand the effect of FDI bringing into play also needs with market-oriented way to solve.To sum up, based on Chinese manufacture industry development route andeconomic effect, the paper constructs a broad concept analytical framework, andanalyzes the co relation connections between manufacture development route andsurplus labor migration, the distortion of finance system and inherent defect ofmanufacture industry. By such tentative analyses, the paper reveals the innerconnections between economic growth and economic development, institutionaltransition and economic growth, domestic department and overseas department.