Upgrading Of Industrial Structure And The Choice Of Government Functions

Summary the lessons of thousands years history of the development of human and economic development of countries in the world since twentieth Century, there is a matter of fact:The process of upgrading of industrial structure originated by the industrial revolution can not only be the transformer power to stimulate econom i c growth, but a I so be the fundamenta I forces to susta in I ong-term economic growth. In the historical period that from middle income countries to high income countries, China is facing shifting economic growth and the tough challenge that the early economic growth mode hardly continues. We can only promote the upgrading of industrial structure as breakthrough and pay more attention to supply side, maintain the sustained growth of economic, at the same time realize the goal of "two centuries" and Chinese dream of the great rejuvenation of Chinese nation in the way that the upgraded version of the China economic growth pattern and growth connotation. Therefor, An important strategic issue emerged which is how to locate the government functions in industrial structure upgrading to let modern economic management philosophy and management mode to promote the continuous upgrade of industrial structure. This paper takes the market process theory of Austrians, market failure theory and state theory as research foundation, takes division of knowledge and limited rationality of government as hypothesis, trades off market efficiency, market failures and government failures on the basis of proven scientific connotation of upgrading the industrial structure, outlines the new blueprint of government function in upgrading of industrial structure.Studies suggest that the nature of the industrial structure upgrading is the process that human labor practices continue to search, combine and bulk copy similar information groups and different kinds of information groups, meet or better meet the need of people by implementing constant change of structural relationship of information group. The realistic condition of decentralized information decides that explore and discover the social knowledge of spontaneous market order has advantage on the government with incomplete information and limited rationality constraint. Consider about self interest preference attribute of government behavior, and on the basis of restrain frame which government joins to upgrade industrial structure in order to compensate market failure, it would become the main logic in the construction of modern economic governance pattern that real ize government turn from being compulsory intervention type to be promote market expansion type.The fifth chapter demonstrates the value of upgrading of the industrial structure to long-term continuous economic growth. After reviewing and assessing the two main theoretical basis which are the strategic trade policy theory and the theory of market failure of government intervention in upgrading of industrial structure. Starting from the political, economic and social point of view, this chapter research the important significance of the Chinese basic national conditions that the transformation of the government from the compulsory intervention type to market expansion type, the transformation from a monopole arrogate to multi-polar co-governance power reconstruction and all levels of public power relative is a foregone conclusion. This chapter also systematic review the theory of industrial structure upgrading involved in classical economics, new classical economics, development economics.The fifth chapter starts from phi losophy, psychology and behavior, by analyzing the opposite and unified of labor theory of value and the subjective theory of value, it got that economic growth and industrial structure upgrade is that the labor process and structural expansion in total on the basis that search, combine and bulk copy information. We can extract from the classical economic growth theory and the theory of modern economic growth development summary that there are two ways of upgrading industrial structure which are the intra industry and inter industry upgrade. The former include increase exist effective information replication rate and replicate not entirely consistent combination of information, The latter refers to replicate the combination of new information. From the Austrian school of economic growth theory we can find that Fundamental drive of industry structure upgrading is the entrepreneur spirit under market economy. This chapter also constructs the concept of ability and upgrading of the industrial structure including the ability of innovation of science and technology, the level of human capital and the ability of saving energy and protect environment which have the nature of public goods and externality, it’ s the basic ability of upgrading industrial structure.By analyzing the market process theory, the fifth chapter gets that the market plays a decisive role in the upgrading is industrial structure, and establish government function should follow the principle that make up market failure. The specific performances are:protect property rights, manage and coordinate the transformation of market information, maintain market organization efficiency. They aim to maintain the market mechanism functions and to strengthen the construction of ability of the upgrading of industrial structure, as well as to make up for the problem that lacking of market supply of public goods. The fifth chapter takes United State after foundation, Japan after "World War 11" and Lat in American who are from structurali sm to neon libera I i sm as object of comparison. By drawing on the review of the government function in USA the upgrading of the industrial structure, analyzing industrial policy, the upgrading of the industrial structure and the relationship between the economic growth in Japan after war and analyzing the Different industrial structure upgrading performance leaded by different government function of different countries,this chapter explains the selection principle of government functions that take the maintenance of market as primary responsibility and take the enhance of the construction about upgrading the industrial structure as important function. At the same time it systematically explores the efficiency of industrial policy. The fifth chapter makes summary review about the process that the upgrading of industrial structure and change of government function. The sixth chapter establishes the evaluation index system of industrial structure upgrading capability in China, and proves that the efficiency of selection of government functions about upgrading the industrial structure in China. The seventh chapter provides policy suggestion for accurately definite the government function in industrial structure upgrading.The innovation and main contribution of this paper:(1) Improve upgrading of industrial structure theory system, explore the essence of the upgrading of industrial structure.(2)Construct the theoretical framework of selection of government function in building industrial structure upgrading.(3) Compare and analysis the international experiences and lesson about selection of government function in industrial structure upgrading.(4)Try to construct the ability and index system of industrial structure upgrading. Inspect the efficiency of selection of government function about industrial structure upgrading in China.(5)Provide policy suggestion about selecting of government function in improving industrial structure upgrading in China.