A Study Of Inherent Relationship Between Government Regulation And Evolution Of Industrial Structure

The problem of industrial structure is one of the important research areas to insight economic operation rules. Many papers made a detailed analysis of the formation and the changes in the industrial structure, from two levels of internal and external environment of industrial development which were population structure, technological level, geographical location, trade structure, and so on. Base on academic issues about industrial structure of theoretical analysis and practical observation, to some certain extent, China's evolution of industrial structure can be understood as the product of institutional arrangement produced by government regulation, which is decided by the special circumstances of economic transition; At the same time, the relationship between government regulation and evolution of industrial structure is not simple one-dimensional, then under some certain conditions the industrial status will also force the incubator of government regulation system to change.This article just following this thought, makes analysis attempt to the inherent relationship between government regulation and evolution of industrial structure from the theory of industrial organization. Firstly this paper briefly reviews the relevant theory of industrial structure and government regulation, and outlines the analysis ideas through the relevant theory; Next, threading on the above analysis, the third chapter broad-brush describes the general trends of China's evolution of industrial structure and the existing problems in the proceed of the evolution; Followed it, the paper discusses the evolution mechanism remaining the level of government regulation. When taking into account the effects of government regulation to evolution of industrial structure which were seldom analyzed in existing academic, the paper focuses on the industrial structure with the law "imbalance - balance - not balanced" and the laws of it, to keep the advancement of industrial structure, promote the rationalization, and will naturally label research perspective as a study of evolution of industrial structure to government regulation. The concludes of Analysis indicate that such a reverse effect relationship does exist, and the realization of this relationship needs to resort to various variables conduction; Summing up the previous two parts of analyses of the inherent relationship, found that how to define good government regulation of the border is the key factor to achieve optimization of the industrial structure. Thus, research perspective in this paper will smoothly transit to explore government regulation (border) in Chapter 5. We firstly analyses the effect of government regulation of the existing competitive and monopoly industries, and we discuss the rationality of government regulation of the border, to increase the persuasiveness, then set an empirical model of the water industry to prove that regulatory costs are far higher than its receipts; This theory with practical dual results fully demonstrates us that the border of the existing government regulation is unreasonable; with the third and the forth chapters of study inherent relationship between the industrial structure and government regulation, we can followly make a conclusion about the need to reform the existing system of government regulation, and eliminate factors from system to inhibit optimization of industrial structure. The final chapter is based on some useful conclusions drawn from the analysis of previous chapters, as well as the prospects to the shortcomings existing in this paper.Different from other research of evolution of industrial structure, this paper is to use government regulation to interpret it; At the same time, as a natural extension of logical thinking, we will also place the institutional changes of government regulation in the evolutionary trajectory of industrial structure. There are some certain differences between analysis paradigm of mainstream economics and this kind of dynamic, multidimensional approaches, but it can also drawn some useful conclusions and has some significance in broadening understanding of the industrial structure problems.