A Study Of Coordinated Development Between China’s Industrial Structural Optimization, Upgrading And Employment

It’s important for a country or region to realize economic growth and socialstability by industrial structural optimization, upgrading and employment promotion.Industrial structural optimization, upgrading can promote sustainable and stablegrowth of the regional economy, and it can drive corresponding increase of theemployment scale and improve the employment structure. Each country or region’foundation, economic system etc. are different, and it depends on the actual situationof China to realize coordinated development between industrial structuraloptimization, upgrading and employment.The dissertation analyzes the question of coordinated development betweenChina’s industrial structural optimization, upgrading and the employment scale, theemployment structure. The content of this dissertation includes a theoretical study ofindustrial structural optimization, upgrading and employment, the experience offoreign countries, the domestic situation and influencing factors, the implementationmechanism analysis, trends which forms the framework of this study.Firstly, this dissertation makes a theoretical study between industrial structuraloptimization, upgrading and employment, and the conclusion is as follows: Theindustrial structural optimization, upgrading and the employment scale come fromthe factor endowment structure in a country or region. A country or region shouldmainly develop the labor-intensive industry when the labor force accounts for thecomparative advantage, and it should develop the capital-intensive industry when thecapital is gradually accounts for the comparative advantage, and the capital can playa leading role on the economic growth, then it will make the coordinateddevelopment between China’s industrial structural optimization, upgrading andemployment. Upgrading of enterprises can promote each other with high levels oflabor employment.Secondly, we make the following conclusions by analyzing economicexperience of the United States and Japan: Japan made capital accumulation based on factor endowments, and made appropriate technological innovation anddeveloped some rational industrial policies, and those measures make coordinateddevelopment between Japan’s industrial structural optimation, upgrading andemployment scale. Japan actively constructed its national value chain, and itgradually eased the imbalance of high and low level of labor employment byenterprises upgrading. American experiences told us that China’s economy should bebuilt on the real economy and should prevent China’s economy from the situation ofexcessive de-industrialization and excessive industry virtualization.The analysis of the status and constraints of coordinated development betweenChina’s industrial structural optimization, upgrading and the employment scaledraws the following conclusions: China’s industrial structure optimization,upgrading and employment don’t coordinate with each other. The factors restrictingthe coordinated development of employment and economic growth in industrialstructure optimization and upgrading include the factor price distortion, capitalmarket distortion and so on; while the factors restricting the balanced employment ofhigh and low level labor force in enterprises upgrading are mainly because thatdomestic enterprises are generally restricted on the low end of the value chain byforeign multinational enterprises which have great power in technology and market,and thus a limited space for upgrading.The dissertation also analyzes the implementation mechanism of coordinationbetween China’s industrial structural optimization, upgrading and the employmentscale. Coordination of regional industrial development strategy is the premise, andimproving the land, capital and other factor markets is the basic term. Promotingtechnological progress is the inherent power which has different effect in promotingcoordination development between China’s industrial structural optimization,upgrading and the employment scale in different regions while reasonable industrialpolicy is the external power, and different region needs use different industrialpolicies to promote China’s industrial structural optimization and upgrading.The analysis of the implementation mechanism of coordination betweenChina’s industrial structural optimization, upgrading and the employment structuremakes the following conclusions: the enterprise upgrading policy is the external power for coordinated development between China’s industrial structuraloptimization and upgrading and the employment structure while agglomerationeconomies are the intrinsic power. Corporate tax incentives, R&D spillovers,service mechanism innovation, search costs of labor can play an important role informing agglomeration economies. In this dissertation, we propose a coordinateddevelopment mode based on GVC and NVC, and the mode is that “firstly formingthe domestic value chain, achieving the integration between GVC and NVC, thenleading some global value chains”, and the order of development is joining theglobal value chain>the national value chain development>the integration betweenGVC and NVC>monopoly of some global value chains.At last, trends of China’s industrial structural optimization and upgrading’simpact on employment scale are that employment scale of the first industry willreduce in short term, and which will increase in long term. The employment scale ofthe second and third industry will increase in the future, but the third industry willincrease much faster than the second one. China’s employment scale will increasemuch faster and imbalance of employment will be eased by China’s industrialstructural optimization and upgrading.