Research On Industrial Structure Upgrade Under The Home Market Effects In China

Chinese economy has been increasing steadily and quickly since the twentieth century the nineties.However,the way that the economic growth takes is the extensive mode,which relies mainly on lower cost of labor and land resources to expand,rather than depending on the improvement of total factor productivity of industry value chain and industry upgrading.Therefore,the core issue in front of our government is to adjust the industrial structure,accelerate the transformation of economic development model and improve the quality of economic growth.What's more,the industrial transfer is the key point to form reasonable industrial division of labor system and optimize productivity space distribution.The bigger market will benefit from the strengths of export and production with the aggregation of trade cost and return of scale,which forms a strong home market effect.The rapid growth of Chinese economy and the large-scale population further strengthen the home market scale,and become important comparative advantages besides labor and capital,which will provide a favorable opportunity for the development of our industry as well as the exploits of some new thoughts for our country's industrial upgrading.Based on economics and statistics theory framework,this paper combines theoretical analysis and empirical research and studies the mechanism of the effect of the home market to promote industrial upgrading related policies through deep analysis on new economic geography and industrial economics.By elaborating the above theory,the paper made empirical test on the existence of the home market effect,explored the agglomeration level of our country's manufacturing industry from space Gini coefficient and the location entropy,and made empirical analysis on the upgrading of the industrial structure which is promoted by home market size.On the basis of the above analysis,the paper analysed the strategy of the escalation of industrial structure under the influence of the home market effect,including the selection of dominant industry,the path of the rising industry,and the policies and measures to promote the upgrading of industrial structure,etc.At last,the paper gives a conclusion and policy suggestions based on the current situation of our country's industry development.The first chapter mainly makes an overall summary of the paper,which mainly introduces the research background,research theoretical and realistic significance,the main content of the research,framework,research methods,the shortages and innovations of the paper.The theoretical foundation and literature review of the second chapter mainly introduces the basic theory and relevant scholars' researches on the current situation of the home market effect.This part mainly expounds from two aspects.The first aspect is the foundation of the paper research.It begins with the analysis of the home market effect from the new economy geography,and the introduction to the new economy geography from the German geometry,the accumulation of social physics,the accumulation of causality and home external economy.And then we can draw the conclusion that the home market effect plays an important part in industrial expansion and industrial spatial agglomeration from the home market effect.Secondly,the paper analyzes the related theory of industrial structure upgrading from an empirical study on industrial structure upgrading,the benchmark of the industrial structure upgrading,the index of the upgrading of industrial structure and the evaluation of the industrial structure upgrading.The second aspect introduces the relevant scholars' research from the home market effect,the upgrading of industrial structure and industrial structure upgrade under the home market effect.The third chapter mainly presents the current situation of our country's escalation of industrial structure,the problems of the upgrading of an industrial structure and the strategy of the industrial structure upgrading.The first aspect is the present situation of the industrial structure in our country,and the paper analyses it from the overall situation of the industrial structure evolution as well as the current situation of the evolution of the industry internal structure.The second aspect is the existing problems of the upgrading of industrial structure in our country,including the hysteresis of the service industry development,the bottom of the value chain of the export-oriented economy,the inefficiency of independent innovation ability,etc.In the third aspect,this paper analyzes the influencing factors of the change of industrial structure in China and the enlightenment of the home market effect to our country's industrial structure upgrading.The fourth chapter is about the mechanism of the home market effect and the industrial structure upgrading.It mainly introduces the influencing mechanism of the home market effect on the industrial agglomeration,the mechanism of industrial agglomeration for upgrading the industrial structure and the enlightenment of the home market effect on the upgrading of industrial structure.The first aspect is the mechanism of the home market effect on the industrial agglomeration.The home market effect optimizes the regional resource configuration in the form of industrial agglomeration,and this kind of agglomeration degree is also an important embodiment of the regional competitiveness.The second aspect is the promotion of the industrial concentration for upgrading the industrial structure.The industrial agglomeration promotes industrial structure upgrading and industrial structure adjustment by recombining resources and elements to realize the optimization of the regional industrial structure and the improvement of the total factor productivity,which improves the quality of economic growth and achieves sustained,rapid and sound economic growth.The third aspect is the enlightenment of the home market effect on industrial structure upgrading,which analyzes "interaction effect",the operation support of the industrial upgrading and the "participatory" cooperation of the industrial upgrading.The fifth chapter is the empirical test of the home market effect and industrial structure upgrading.It mainly introduces the empirical test of the existence of home market effect,and the measurement of our country's manufacturing industry division agglomeration level as well as the empirical test of the home market size for upgrading the industrial structure.The first aspect is empirical test of the existence of the home market effect.We use a variety of methods to study the existence of the home market effect for the provincial level panel data,and it turned out that the home market effect does not exist at the provincial level.Viewed from the provincial panel data analysis,we found the great difference between the provincial panel data and the test result of the provincial level,and there are home market effects in part of the provinces which mainly concentrated in convenient transportation area and easy distribution area for the goods.The second aspect is the measurement of the agglomeration level of manufacturing industry divisions,which calculated through various provinces and cities' space Gini coefficient and the location entropy,and found the distinct differences of the agglomeration level of different manufacturing sector in different provinces.The third aspect is the empirical test of the size of the home market for upgrading the industrial structure,and the home market scale can promote industrial agglomeration which is beneficial to industrial upgrading.The home market effect plays a role on industrial upgrading while the trade factor is also an important factor to influence industrial agglomeration.The sixth chapter is the option based on industrial structure upgrading under the home market effect,which mainly presents the choice of leading industry,the rising path of the industry,and the promotion policy measures of the upgrading of an industrial structure.The first aspect is the choice of the leading industry.Combined with the empirical results it mainly focuses on the modern manufacturing,intelligent robot,information,and a new generation of information technology and the nuclear power industry.The second aspect is the rising path of the industry,including the type of path and the specific path.The third aspect is the policy measures of the promotion of the upgrading of an industrial structure,including strengthening regional cooperation,overall planning and rational layout;The interaction among industries based on the strengths;Developing the leading industries and further bring the home market effect into play;Enhancing the independent innovation capacity to further participate the global value chain.Chapter seven gives a summary of this paper and relevant policy recommendations.According to the above research results,this paper proposed the research conclusions and policy suggestions,which include the inexistence of home market effect at provincial level,the existence of the home market effect at dividing provincial level,and the function of the Gini coefficient and the uneven distribution of home entropy as well as the home market size in promoting the industrial upgrading.Viewed from the above researches,using the enormous market space and needs,implementing the home market effect is to increase investment in the innovation of science and technology,which can promote the upgrading of industrial structure as well as the rapid and sustainable economic growth in China.