The Analysis Of Industrial Structure Effect Of Knowledge-Based Economy And Economic Growth In Shanghai

The purpose of this study is to investigate the tendency and orientation of industrial structure under development of knowledge-based economy in Shanghai, aiming at the improvement of economic growth. According to the interaction of knowledge-based economy, industrial structure and economic growth, this study researches the following questions:Firstly, this study explains the meaning and theory of knowledge-based economy on documentary evidence, and the relationship between economic growth and knowledge-based economy in a systematic way. With the help of the modified indexes of APEC, we analyze the development level of knowledge-based economy in Shanghai. And it shows that Shanghai's knowledge-based economy has improved greatly between 1990 and 2003, meanwhile the correlation between the index and the economic growth is very significant.Secondly, we analyze the industrial structure and its effect to the economic growth using statistical methods. We found that Shanghai is in a great growing in economic since the reform and open of late 1970's, the scale of agricultural economies goes up steadily, the industry and building trade also have a great growth, the proportion of tertiary industry in the national economy as a whole increases year by year. The industrial structure of Shanghai shows a tendency to rationalization. But there are also many questions, such as, the scale of pillar industry, the development of high and new technology industry, and the steady development of tertiary industry, etc. On the base of analyzing the economy of Shanghai by shift-share way, we reveal that economic growth is the combined effect of the industrial structure and the competitive power. The national economic growth of Shanghai is primarily supported by the secondary and tertiary industries. However, as to the proportion of tertiary industry in the national economy as a whole, its output elasticity counteracts the positive effect made by other industries. And its contribution to national economy is mainly from the traditional trade, such as, wholesale, retail trade and restaurant, while the action of the finance, education and insurance is very poor.Finally, we analyze the industrial structure effect of knowledge-based economy using statistical data and econometricanalysis. We find that knowledge-based economy has affect on the industrial structure, but there is no cointegration relation, that is to say, there is no long - term stability between them. The development of knowledge-based economy acts obviously different to the three main industries as well as the trades within them.Our finding reply that nowadays the knowledge-based economy of shanghai performs better than other domestic cities, but inferior to oversea cities in the world. Though the industrial structure of Shanghai tends to rationalization constantly, there are still plenty of shortcomings. Therefore, the government of Shanghai should take further steps to develop the creativity, spread and application of knowledge, and to adjust the industrial structure. As thing stands, the development of tertiary industry must depend on the promotion of the first and second industries. For this reason we should make full use of the latest knowledge to reform the traditional industries, to pave way for the development of tertiary industry and the whole national economy of Shanghai.