Research On The Core Competitiveness Of County Economy Of Hunan

The Sixteenth National Party Congress report proposed the policy of developing agricultural product processing industry to boost the county economy in November, 2002, while the concept of"county economy"is used for the first time. The Decision of the CPC Central Committee on Several Issues Concerning the Establishment of a Socialist Market Economic Structure adopted by the Third Plenary Session of the 16th CPC Central Committee reemphasized that we must"make great effort to develop county economy, expand the fields for rural labors, abolish restrictive regulations for farmers to work in cities, and create more job opportunities for rural labors". Most of the land area and the major portion of the population are concentrated in counties. The development of county economy, which plays an essential part in solving the problems concerning agriculture, farmers and rural areas, is of vital importance to the nation's economy and the people's livelihood.County economy, which takes county towns as the centre, rural towns as the bond, and counties as hinterland, is regional economy with rich resources, wide range of products and complete functions. At present, Chinese regional economy is undeveloped, occupying a lower position in national economy. The main reason is that many county towns still lack their own core-competitiveness. It is mainly manifested in producing many products without their own features and brands, having serious convergence in the process of developing county economy. People in each region of the county and every economic subject do not have adequate awareness about market economy. Thus they can't produce their own advantageous products according to the demand of market. Therefore it is necessary to solve the problems of how to optimize the allocation of resources within the county, to build competitive advantages and to strengthen core-competitiveness in order to achieve the sustainable development of the county economy.However, people paid insufficient attention to in which area the county's economic competitive advantages lie and how to utilize them to nurture the core-competitiveness of county economy. What's worse, some counties give up their original advantages; instead they blindly follow the successful model of economically developed counties, which eventually leading to the weakening of overall competitiveness of such counties. Therefore, studying how to accelerate the county's economic development, especially cultivate core-competitiveness of county economy, has become a very important research subject. The core-competitiveness of the county economy is the result of many factors working together and the presentation of an economic unit's overall strength. Therefore, to speed up the county's economic development must focus on cultivating their core-competence. It reflects the county's current economic strength, more importantly, it can more accurately sketch and cultivate the capacity for the county's future economic development and the county's developmental trends.This paper firstly defines and analyses the core-competitiveness of county economy, and make a comparison between core-competitiveness and the general ones. Secondly, this paper makes use of the Principal Component Analysis and Factors Analysis to do a comparative study on every aspects of the core-competitiveness of the county economy in Hunan province, from which it gets an overall evaluation of the core-competitiveness of 88 counties in Hunan province in 2008. Lastly, the paper explains the steps and mechanisms to cultivate the core-competitiveness of the county economy and proposes countermeasures and suggestions to promote the core-competitiveness of county economy in Hunan province.