Research On Industrial Correlation In Manufacturing Industry Between China And Japan

Manufacturing industry is the material foundation of national economy, which mainly works on processing and re-processing natural resources and raw materials in order to provide capital goods to other national sectors and consumer goods to the whole society. From the view of the developmental history of world economy, advanced manufacturing is an indispensable factor for the upgrade of national economy from agriculture to industry. China now has a great advancement in economic power, overall national strength and people's living standards by the reform and opening up for over thirty years. China ranks third in 2007 world Total Approvals of GDP beyond Germany. Now China has had a great advancement in manufacturing, and becomes the third largest manufacturing country, only ranking after the United States and Japan. But Chinese manufacturing industry still has a great grads gap in production technology, management, labor productivity, value-added products, as well as the import dependence of core and key technologies with developed countries such as Japan. Chinese industrialization is still in mid-stage. According to the existing literatures at home and abroad, these gaps can be narrowed not only by the means of independent innovation, technology introduction and investment, but also by economic cooperation with other countries such as technology development cooperation and project cooperation. Therefore, it is especially important to make a clear of the following questions. Those are which countries should be chose to cooperate with and why to cooperate with those countries.Not only China and Japan is adjoined in geography, but both of them are also the largest countries in different aspects in eastern Asian region. China is the largest developing country and Japan is the most advanced developed country. At present, China is the largest import country for Japan, and Japan,following EU and the United States,becomes the third largest trade partner and investment country for China. And Japan also provides the most government development assistance (ODA) to China. These facts show that Chinese economic development partly depends on Japan and Japanese economic growth needs the support from Chinese economy. Thus, China and Japan is close not only in geography but especially in economy. In this way, the economic cooperation between China and Japan has a good prerequisite. Based on it, the dissertation analyses positively Sino-Japanese cooperation in manufacturing in the perspective of industry correlation.Most of scholars agreed that the economic cooperation between China and Japan and even in the whole eastern Asian is inexorable trend in the context of economic globalization. But it is still insufficient of the studies about the existence and measurement of the economic interdependence degree of China and Japan, and it is still blank of the studies about the effective analysis model of the economic growth correlation between China and Japan and even between their respective industries.Therefore, the dissertation shows a positive analysis of the industrial-level cooperation between China and Japan. The analysis is about the existing gaps, the blocks caused by these gaps, the potential in expected future, the conditions and so on of manufacturing cooperation between China and Japan and can provide a basis for economic decision-making. The results of the analysis show that:1. There is a great gap in manufacturing between China and Japan. (1) According to Leontief hypothesis, by the comparative analysis of Chinese and Japanese respective skyline map in manufacturing, it finds that the skyline map of China is much more rugged than Japan. This shows that Chinese industrial structure is still not mature. (2) Through the comparative analysis of the gaps in trade structure by comparative advantage index and of pillar industries by one to one and one-to-many industrial correlations between China and Japan, it finds that China lags behind Japan in industrial structure and trade structure, and China is different with Japan in pillar industries. (3) It analyses the gaps and the formation of the gaps in manufacturing between China and Japan by the means of Structure Decomposition Analysis (SDA) and so on, and then makes corresponding policies against these gaps and problems, so as to speed up upgrading and optimizing industrial structure in Chinese manufacturing.2. There is great potential in Sino-Japan manufacturing cooperation. At present, there is a similar level of economic development among the member countries in the mature regional economic organizations such as the European Union, NAFTA, and ASEAN. By contrast, there are huge gaps in manufacturing between China and Japan. Whether the gaps can hinder the process of Sino-Japan economic cooperation? The problem can be answered by the analysis of potential and conditions of Sino-Japan cooperation. The result of the analysis shows that there is great potential and perspective in Sino-Japan economic cooperation in expected future.3. It is necessary for China and Japan to realize the deeply economic cooperation. Firstly, build up a model of Sino-Japan interactively economic growth, and then put it into practice as the base year of 2000 for China and 2002 for Japan (the base year is early because of the existing data). The result shows that if Japanese total output of 2005 increases by 1 unit from that of 2002, Chinese total output will accordingly increase by 0.178 units; and if Chinese total output of 2002 increases by 1 unit from that of 2000, Japanese total output will accordingly increase by 44.79 units. Meanwhile, the results in industry-level between China and Japan have been achieved. Conclusions are that the two economies are mutually beneficial and Chinese economic growth is more important for Japan than Japan's for China.To sum up, there are some gaps in manufacturing between China and Japan, but there is also the enormous potential of economic cooperation. And both countries help each other forward in economic growth, which becomes the foundation of industrial-level economic cooperation. Therefore, to strengthen the division of labor and cooperation helps Chinese industrial structure to upgrade and optimize, and improves Japanese economic growth, and furthers the integration process of East Asia.