The Shift-share Analysis On The Development Of Regional Industry In China

Research has shown that reasonable industry structure and industrial agglomeration contribute the development of Region Economy. However, the government-oriented situation, foreign investment and the development of national economy will affect the efficiency of industry structure and industrial agglomeration. Recently, the development of regional industry has become a hot issue. But there are still few researches on the effect and efficiency of industry structure and industrial agglomeration.By analyzing the influencing mechanism of industry structure and industrial agglomeration on economic growth, selecting the data between the year from 2001 to 2007, and making use of the Shift-share Analysis Model and its extension, the paper introduces the empirical analysis of structural effect, agglomeration effect and their efficiency of regional industry. The results demonstrated that the efficiency of structural readjustment is not remarkable in those areas which are dominated by the government. The phenomenon of overmuch dependence on international capital and overmuch importance on large corporations leads to monopoly in resource and market from those large corporations and the inefficiency of industrial agglomeration. The development of the private enterprises makes for the self-adjustment in market and the optimization of the industrial structure. Regional industrial agglomeration dominated by private enterprises has significant efficiency.Consequently, the paper proposes that the adjusting style of industry structure dominated by the government should be changed. Inducement of foreign capital should obey the market discipline instead of pursuing the quantity. To develop large corporations in the one hand, those small-and-medium-sized enterprises should be developed on the other hand, which will break the monopoly by large corporations in resource market and make a fair market competitive environment. The paper advises that those private enterprises should be encouraged and should become the great power which impels the development of regional industry and economy.