On The Status Of The Cost Of The Shanghai Business And Its Impact On The Upgrading Of The Industrial Structure

Business cost is very an important factor to measure a region or a city's comprehensive competitiveness, also an important factor for investment, trade, business and regional economic development. In recent years, with economic development, factor costs are rising in Shanghai. The rising also leads to rising in business costs. Then, rising in business costs reduce the attractiveness of investment in Shanghai, Shanghai's investment environment has deteriorated, resulting in a large number of businesses have relocated to other places, impede the further economic development in Shanghai. In terms of resources, energy and environmental constraints, Shanghai's service industry develop at a slow pace. The most important cause is that the patter of economic development does not change fundamentally.In order to change the patter of economic development, and break the resources, energy and environmental constraints, find in a resource-saving and environment-friendly economic development way, we should have a comprehensive understanding on business costs firstly. In accordance with the business cost, we can choose the leading industries in Shanghai. By playing the comparative advantage in business cost to reduce cost, to break the resources, energy and environmental constraints, we can accelerate the change of economic development patter, the transformation of economic structure and upgrading industries.This article systematic reviews the literature about business costs and the industrial structure upgrading in Shanghai, defines the meaning of business costs on the basis of the review. Through the careful deconstruction of the constituent elements of Business cost, establishment the three-level index system to evaluate the business cost; according to a large number of statistical data and research data based on questionnaires, we analyze the constitute status and development trend of business cost in Shanghai. The analysis showed that: in terms of hardware costs, it is a disadvantage for Shanghai. Hardware costs have an upward trend with economic development. In soft costs, it is an advantage for Shanghai. Soft costs will decline further with the degree of the Shanghai International continues to deepen. Then, on this basis, we discuss how the cost of the business in Shanghai to promote upgrading of the industrial structure. First, we analyze the principles about the business cost to promote the industrial structure upgrading theoretically. Then, considering the goal of upgrading the industrial structure of Shanghai, we study how the business cost to promote the industrial structure upgrading in Shanghai. Finally, based on the analysis of full text, we find that should have a dialectical view of business costs; we also control and optimize the structure of the business cost reasonably, and develop the Headquarters Economy.