A Study On The Convergence Of China's Regional Industrial Structure

The convergence of regional industrial structure is generally a common trend emerged during the development of economy. It means that regions endowed with different resources form the same or a similar industrial structure. In essence, it is a phenomenon that regions violate their comparative advantages by abandoning their division of labor but turning to seek their own independent development. The convergence of industrial structure is an attracting topic and also a controversial one in regional economics. Recent studies have deepened our understandings of this problem in China; however, in many aspects there is still no unified or agreed interpretation of it. This paper will make an in-depth study on the convergence of regional industrial structure and propose some corresponding strategies and measures.First, this paper will define the convergence of regional industrial structure; detail and sum up relevant theories and bibliographies, especially the methods for measuring industrial convergence; and explore direction for further improvement. In Chapter Three and Four, this paper will investigate the causes of this phenomenon in China from the perspective of government's decision-making. And especially in Chapter Four, by introducing technological progress parameter this paper will build an inter-period labor-division decision-making model; and link with China's reform process this chapter will delve into the origin of the convergence of regional industrial structure. In Chapter Five, through the establishment of Cournot model, this paper make an analysis of the convergence of regional industrial structure brought about by the loss of efficiency. In Chapter VI, this paper discusses the solution of the convergence of regional industrial structure. Study results are as follows:1. The phenomenon of regional industrial structure convergence do exists in China, but it just reflected in the macro-level, and has changed a great deal.2. Due to restrictions on technology and data, methods for measuring industrial structure convergence need improvement.3. The impact of regional industrial structure convergence is both advantageous and disadvantageous, so it can not all be negative.4. Government's decision-making plays an important role in the convergence of regional industrial structure, their own rational choice but eventually lead to "Prisoner's Dilemma". 5. Convergence of regional industrial structure brought about by the decline in the overall efficiency and welfare loss.