The Research On Dynamic Correlation Model Of Chinese Economic System And Industrial Structure

There is a close link between economic system,industrial structure and economic growth. A great deal of research was made on the relationship of economic system and economic growth, industrial structure and economic growth, and there was a rich result. Some accomplished scholars and their research have involved the subject about the relationship of economic system and industrial structure in varying degrees, such as original Eastern Europe economists' research on controlling through planning leads to the problem of the separation between demand structure and industrial structure; Neo-Institutional School's argument on the property arrangement and the efficiency of allocation of resources; A series of research has made by domestic scholars on transition economy. Besides, China is going through dual changes—planned economy is gradually transforming into market economy in the respect of economic system; traditional industrial structure is evolving to modern ones in the respect of structure models. Both respects have achieved great successes. It is generally believed that the most basic driving force of the Chinese economic growth in the 30 years is the economic system reform. Meanwhile, industrial structure, especially the ones of rational cooperativeness provide a path to the economy experiences sustained and rapid growth. Therefore, the author is trying to create a dynamic model from a new angle on the basis of summing up and learning from the predecessors' research, and combining the practice of the Chinese economic development, to argue the relationship between the Chinese economic system and industrial structure.Economic system affects allocation of resources, which determines the state of industrial structure. Meanwhile, economic aggregates consist of technical economy amount of each industrial sector. Hereby, the concept of structure loss was put forward, and was elaborated with the help of the model. The so-called "Structure Loss" refers to a loss of gross domestic product, using actual gross domestic product at present as a reference. The loss caused by the system, but exhibit externally in the form of industrial structure imbalance. The dynamic correlation model of Chinese economic system and industrial structure was created with the aid of this concept. The internal logic of the model is as follows: economic system restricts state of industrial structure by affecting the way of resources allocation and the acts of the economic subject. Meanwhile, the state of industrial structure in every production cycle has the corresponding "structure loss". When the structure loss is within an acceptable range, markets and governments will have the stimulus to keep or facilitate fine adjustments of the current economic system. Contrary, when a serious disequilibrium happens in the industrial structure, or the government pursuits of a special structure state, the economic system will have a tendency of adjustment or changes. This process appears_like the state of industrial structure reversely drives the choice of economic system. Repeating in this way, which promotes the economic system and industrial structural to evolve and develop together. This is the main point in the third chapter.The fourth and fifth chapters mainly focus on expanding and detailing the above model. How the economic system affects the form of industrial structure through affecting the way of allocation of resources and acts of the economic subject was mainly elaborated in the fourth chapter. Besides, the practice of Chinese economic dual reformations after 1978 was taken as an example to analyze. The author thinks there are several main ways: Have reduced the transaction costs through providing system protection, clarifying ownership and making sure the market price; Have promoted the technical progress through the effect of spill and property right incentive; Have advanced the development of tertiary industry since the human capital accumulation has been paid attention; Have changed the direction of business investment through changing the constraint conditions in the enterprises. All these ways are to promote the industrial structure to rationalize, be advanced, be efficient, and also to reduce the "structure loss".The state of industrial structure has the opposite affect to the choice of economic system was argued in the fifth chapter. The existence of "structure loss" means there is room for allocation of resources to have Pareto improvement; it consists of the potential incomes besides the current economic system. When structure loss is greater than the costs possibly needed for the economic system to change, rational government has the incentive to predominate in the economic system reform. Here the author mainly use the analysis of "cost-benefit" in the economic, take the examples of the major large adjustments around 1949 and 1978 to explain this view.