Adjustment Of Industrial Structure

Industrial restructuring is a central issue which attracts great attention fromscholars in China at present. However, most documents about industrial restructuringpay close attention to the variables or data analysis and countermeasure research. Andfew theoretical analyses about this issue are limit in the frame of neoclassicaleconomics theories. It is short of theoretical documents which deeply search themechanism of industrial restructuring from the real market process. This doctoraldissertation is going to make up this deficiency by breaking through the framework ofneoclassical economics, and to do a theoretical and deep analysis of industrialrestructuring using the Austria School’s analyzing measures such as the division ofknowledge, marketing process, entrepreneur, dynamic efficiency from a view which ismore close to the real market.Industrial restructuring can be realized in two ways: the mechanism leaded bythe government and the mechanism leaded by the market. Firstly this paper proposesthe three conditions about the subject should have who can lead the industrialrestructuring effectively. It also explain why the government is failed to successfullylead the industrial restructuring from the prospective of the nature of knowledge, thebounded rationality and self-conceited of government, micro law of the change ofindustrial structure, and the dialectical difference between effect and efficiency. Thereasons are:(1) government does not have the ability to foresee the optimal industrialstructure;(2) the government officials do not pay more attention to the market thanentrepreneurs;(3) the administrative measures produce effect but not efficiency. Sothe author points out that industrial restructuring should be dominated by the market,and make full use of the function of the market mechanism.Secondly, this paper builds a mathematical model about industrial restructuringand analyzes the mechanism of the market dominating industrial restructuring deeply.The economic problems are caused by the changes, and the fundamental problem ofindustrial restructuring is the problem of knowledge. It can be solved only throughrival process in market. The meaning of market competition is that it is a procedure ofdiscover and use the knowledge. In essentially, price mechanism is an effectivesystem to use knowledge. The problem of knowledge decides that non-equilibrium state is the normal state of real economy. Every industrial structure gap will show itthrough the non-equilibrium price in the form of net profit, which constructs anincentive to entrepreneurs and contributes to the formation of emulativeentrepreneur’s procedure of discovery. In this process, as the ignorance beingeliminated, the non-equilibrium state of marketing is corrected and the industrialstructure tends to be harmonious. It is a process that the government cannot simulateor duplicate.Thirdly, the author re-recognizes the “marketing failure” in the process ofindustrial restructuring, and point out that the effective industrial restructuring neverdepend on the perfect competition or the assumptions of general equilibrium theory.In the market competition, the “waste” of repetitive manufacturing is the necessaryand irresistible cost of market regulation. The domination of government is not onlyfailed to avoid the “waste”, but also exacerbate the problem of knowledge and willmake greater losses. In the process of industrial restructuring, there is no marketfailure exists. In fact, the so-called “information incompletion and asymmetry”,external and monopolistic problems are people’s misunderstandings based on thestatic views to the process of real market. It cannot be the reason to supportgovernment to lead the industrial restructuring.Then, this paper analyzes the role of government under the background ofindustrial restructuring, and strives to clarify the boundary between government andmarket. The industrial restructuring itself is a filed in which the market can effectivelyregulate. As a kind of spontaneous order, marketing mechanism has born vitality. Toget effective marketing operation, it needs some systematic preconditions which needguarantees from the government. To maintain and promote the market to regulate theindustrial restructuring, government should devote itself to perfect the rule of market,to promote the function of market, and play a better role in three fields:(1) systemsupplies;(2) public goods;(3) macro policies.After the Second World War, Japan’s successful adjustment of industrialstructure process often quoted by some scholars as the evidence of the success ofgovernment leading industrial restructuring or intervenes directly in industrial policy.In the final of this paper, it was refuted through the review and evaluation of Japan’spost-war period of the industrial policy, and the author points out that the reasons forthe success of Japan is not the government leading, but the market leading. The case of Japan is not only failed to refute the author’s view in the paper, but also verified it.To sum up, the core idea of this doctoral dissertation can be summarized as:government does not have the conditions to lead the industry structure adjustment,and it should not intervene directly in industry development. Market leading industrialrestructuring can solve the fundamental economic problem: the knowledge problemeffectively by using the price mechanism, encouraging entrepreneurship and marketcompetition. This process will promote market self-correcting, and the industrialstructure tending to be coordinated. During this process, there is no “market failure”exist.In this doctoral dissertation, the possible innovation placed in five aspects: firstone is the innovation of the topic selection. Industrial restructuring is a central issue inChina. But it is short of theoretical documents which deeply search the mechanism ofindustrial restructuring. This paper is going to make up this deficiency. The secondpoint is the innovation of the research perspective, for using a different theoreticalframework from neoclassical economics to analyze the industrial restructuringmechanism. The third one is that this paper is trying to clarify the misunderstandingwhich formed by people for a long time, and using a series of theoretical tool to newlyclarify the effective conditions of the market mechanism, the “blindness” of market,“market failure”, Japan’s industrial policy and so on, then puts forward someinnovative ideas. The forth one is to provide a new theoretical thinking pattern forrethinking of our country’s industrial restructuring, promoting strategic adjustment ofeconomic structure and economic transformation. The fifth one is by using theadjustment of industrial structure as the carrier, trying to answer how to deal with thecore issue of the economic system reform: the relationship between government andmarket, and provide a new theoretical support for the comprehensively deepen reformof China.The main research methods in the dissertation are: the method of literatureresearch, theoretical analysis, dynamic analysis, mathematical analysis and caseanalysis.