A Study On Industrial Competitiveness Of The Pearl River Delta

The development of Pear River Delta is the epitome of Chinese reforming and opening as well as high-speed economy growth in middle 80's and 90's and the example of developing country. As the most developed and earliest opened area in China, the PRD has dominant effect to Chinese economy development, which provides a model to other area with its developing mode, marketing opinion, theory and experience in management, as well as the difficulties that it faces. For the government, in order to make regional industrial policy, promote the core competitiveness of the PRD and keep the development sustainable, it is very important both in theory and reality to evaluate the industrial competitiveness of the PRD scientifically and hold the status of the industry of the PRD both in domestic and regional market exactly. Taking the industrial competitiveness of the PRD as object, basing on economy theories, this paper aims to find the advantage, limitation, problem, opportunity and challenge of the industry of the PRD, and gives some instructive propose at the same time.Firstly the paper analyses the research domain and the conception of industrial competitiveness thoroughly as well as the factors which affect it. Michael Porter believes an industry is composed of a group of companies that produce the same production or substitute, and industrial competitiveness is the ability of an industry to extend market, to occupy international or regional market, thereby to get more profit than its competitors. There are six factors which have effect on industrial competitiveness, that are, the scale of industry, the concentration degree of market, the natural resources, the location, the ability of tech innovation, the organize and construction of industry andcompetitive environment.This paper also analyses the main theories about industrial competitiveness. The comparative advantage theories include the theories of David Ricardo, Hechscher-Ohlin, and Raymand Vernon, which are presented with the limitation of these traditional theories at the same time. Furthermore I introduce the heart of competitive advantage theory of Michael Porter and give some evaluation of it. The domestic achievement of industrial competitiveness research is presented by the simple analyze of Jin Pei's analyze frame of commodity's international competitiveness and the research of Pei Chang-hong.In order to get a further knowledge about the environment and the competitor of the industry development of the PRD, the third part of this paper make a realistic analyze about the total industrial competitiveness of the PRD, especially the developing condition, the advantage and the inferiority of it. Two indexes, the 2003 competitiveness index of industrial growth position of all provinces and the 2003 competitiveness index of average growth of per employed person of all provinces, indicate that although Gong Dong has kept in the sixth rank in the indexes for some years its economy growth is slower than Zhe Jiang, Jiang Su and Shan Dong apparently. Taking industry as an example the paper analyzes the condition of the PRD from nine sectors—electronic information, electronic machinery, petrol and chemical, textile and costume, foods and beverage, architectural material, automobile, paper and medicine. The level of economy and social development and the competitiveness of the PRD are still higher than the Long River Delta presently, but the former is inferior to the latter in economy growth anddeveloping acceleration. Compared with the Long River Delta the weaknesses of the PRD are the followings: inferiority in human resources, lacking leadership cities, the weakness in industrial construction, lacking industrial tycoon, absorbing less foreign direct investment, a short leg on internal economy. The main problem and challenge that the PRD faces are the followings: the wrong production mode, the negative effect of labor-dense industry, lacking core competitiveness caused by bad ability of tech innovation, and the negative effect of developing mode of external economy.The positive factor of the fast development of the PRD is shrinking now. If we want to keep ahead, we must consider how to enhance the present advantage, how to find a right way to improve its industrial competitiveness and its regional economy competitiveness. Considering the present condition and problems of the industry of the PRD the paper gives some instructive advises finally:Firstly the Digital PRD Policy, that means, developing electronic information in advance, thinking much of the construction of regional innovation system, driving industrialize by informationize, paying more attention to the development of human resources and eliminating the human resource shortage of industrial development.Secondly the Extend PRD Policy, that means, accelerating the economy linkage between Shen Zhen and Hong Kong; and the linkage of economy process system, the financial industry, the technology and profession education and the service trade.Thirdly the Centralizing PRD Policy, that means, setting the core competitiveness of companies, making linkage business as the main task,...