Linkage Analysis Of Leading Industry In Hubei Province And Study Of Industry Policy

The choice and cultivation of leading industry play an very important role in the development of regional economy. This paper calculated a series of indexes about industry linkage based on the data from input-output table(2000) of Hubei Province. This paper is also an integration of quantitive analysis and related theories, such as industry structure theory, input-output theory, regional economics theory and industry convergence theory. By using of these indexes and theories, the paper deeply studied technology and economy linkage among industries. And then, it discussed the selecting of the leading industry. After analysing the relationship between leading industry and related industries, it insisted fostering industry convergence.The electronics & communications industry was selected to be leading industry for its highly denseness of technology and linkage effects.After analyzing of industry linkage, we found that there was a poor indirect relation between electronics &communications industry and related industries. All of these indicated that the industry structure in Hubei Province is not appropriate. On the other hand, after calculating the impact on the local economy from a change in final demands of electronics industry, we found that the difference between the impact from a change in final demands and aggregate output is great. It showed that the aggregate output of this industry could not meet the final demands. The electronics & communications industry was full of potential. Therefore, the relationship between electronics & communications industry and related industries should be strengthened.According to the rule of international industry development, the linkage between electronics & communications industry and motor industry is becoming more and more important. Furthermore, the motor industry has been developed to be advantage industry in Hubei province. Therefore, this paper suggested improving the linkage level between electronics & communications industry and motor industry.