Research On The Change Of Structure During The Economic Growth Of Cities In China

Study on economic growth is the key objective of macro economics. Neo-classical theory of economic growth said that product and factor markets always keep in balance, and no matter from the point of view of producer or consumer, resource exists long term effective configuration, called Pareto optimal state. Therefore the marginal productivity of capital and labour are the same in differential Industry department, also the flow of capital and labour among differential industry department doesn't have any affect on the output. Reconfiguration of resource will bring benefit only in the period of economic extension. Based on above points, new classical economics regards the power of growth of total output as capital accumulation,quantity of labor force,improvement of quality,increasing proportion of intermediate input,total factor productivity growth and so on.U.S. economist H.B. Chenery as the representative of Structuralist school believes that economy is unbalanced and resources can't be long in the effective distribution of state. A non-balanced main reason is that many countries, especially developing countries within the traditional industries and modern industries co-exist in the dual economic shape, in memory of traditional industries in a large number of modern industry can't be absorbed by the surplus labor force. Non-balanced economy means that labor and capital in different sectors of the marginal productivity is different. Therefore, through the departments of labor and capital between the elements of the re-allocation will undoubtedly increase the total output, thereby promoting economic growth.Lucas (1988, 2002) stressed that city has close relationship with economic growth, for human capital is concentrated in city, and urban existence and development is an important manifestation of the external property of human capital, also it can be a form of measurement human capital stock. Moreover city is the accumulation place of advanced production technology. Urbanization process is labor-intensive technology to human capital-intensive technology transfer process. Therefore, the city is a country's economic growth in the core space, and the city is different from the countries (nations) the economic characteristics. The understanding of city in economic growth from Lucas is neglected by the existing literature. Based on this, we choose city as economic units, and further study the change of industrial structure in economic growth. The change in industrial structure is the transfer or movement of factors of production process, so this paper will along the efficiency of factor - industrial structure– ideas of economic growth, do theoretical and empirical research on the inner links among them. This paper is divided into seven chapters.Chapter 1 is a simple introduction of thesis topics. First based on the description of the fact that city is the core of economic growth, sums up the theoretical and practical significance of this paper, then reviews the theory of domestic and foreign-related research, finally clarifies the object of study and research methods in this paper.Chapter 2 analyzes the track of evolution of the industrial structure in developed countries and cities, and further confirms main features and development trends of the industrial structure in cities given by this paper.Chapter 3 makes a deep analysis on the changes in industrial structure of Chinese cities since 1988, then describes the changes of the ratios between three industrial relations.Chapter 4 analyzes the reasons which result in the changes of the urban industrial structure from differential sections, such as natural resources, social supply, social demand and so on. Natural resources, consumption structure, investment structure, technological progress, institutional factors, economic policy and other factors will be considered in this chapter.Chapter 5 makes a study on the differences of marginal productivity in factors among different urban industries. Due to the differences of marginal productivity of factor of production in different industries, if transfers factors of production from the department with low productivity to the department with high productivity, then it will promote economic growth. The movement of factors of production among different industries is the change process of industrial structure. According to the theoretical and empirical analysis in the five chapters ahead,Chapter 6 points out the direction of the industrial development of Chinese cities and the function of government in the changes of urban industrial structure.Chapter 7 makes a concluding remark for this full paper, which points out the innovation of this paper, also mentions that some places need to further study.