Research On Structural Evolution Of Industrial Economic System Model Based On System Dynamics

Industrial economic system is a dynamic evolutional system, and is composed of many economic elements. Structural evolution of industrial economic system means the changing of each industry's proportion. Economy developing requires adjusting industrial economic system. System Dynamics is based on feedback control theory and computer simulation technology, and it is an applied science which combines qualitative analysis and quantitative analysis.First, the paper analyzes the research object of System Dynamics and some basic characteristics of industrial economic system. Then it analyzes the general mode of industrial economic system evolution, and finds that huge fluctuation causes the evolution of industrial economic system. Then through analyzing several elements which can affect industrial economic system evolution, the paper establishes theory base for future analyzing.Second, on the base of qualitative analysis, the paper applies System Dynamics and separates industrial economic system to n subsystems. By analyzing the relation between the i subsystem and the whole industrial economic system, the paper makes up causality figures. By setting some hypothetical conditions, the paper chooses 21 variables and defines their types, and then conceives an industrial economic system structure evolution simulation model which includes 15 major functions. After that, with the help of Vensim software, the paper checkouts the model, and the results indicates the model has universal applicability.Finally, the paper applies the model to practical use, and forecasts the structure evolution route of industrial economic system of China. Besides that, through analyzing several affecting factors, the paper finds that the employment structure of China is unreasonable, so it enacts a series of simulated projects. By the comparing of each simulated projects, the paper gives a dynamic optimized project to adjust industrial economic system. By using the new project, the industrial economic system of China shows benign evolution process. The new project also improves the economic continual development ability. Practical results indicate that the model not only has simulation function, but also has the "policy laboratory" function, so it has applied value for the government to make decisions.