Empirical Research On Change In Manufacturing Industry's Structure And Growth Of Productivity In Jiangsu

The process of modern economic growth is not only the process of productivity growth, but also the process of regulation of economic structure. Structure Change has been an important element which influences productivity growth. Adopting the shift-share approach, this paper studied the influence of manufacturing structural change on productivity growth from 1999 to 2007 in Jiangsu. Moreover, by adopting panel-data model, we analyzed elements which affected the structural change effect in manufacturing industry.Firstly, based on added value structure, labor structure and capital structure, this paper described the current state and structural change of manufacturing in Jiangsu. Depending on that description and using the shift-share method, we decomposed labor productivity growth into within-growth effect, static shift effect and dynamic shift effect. The TFP growth was decomposed into within-growth effect, output structural effect, labor-shift effect and capital-shift effect. From two aspects——flow of factors both between sections and between cities, we analyzed the influence of manufacturing structural change on productivity growth. This paper reached the following conclusion: based on the flow of factors, structural change has positive influence on productivity growth. Meanwhile, this paper researched the productivity effects of the structural change in manufacturing, the impact of which is wave-like in the southern parts of Jiangsu Province. We also found that the configuration of factors among different industries is in a constant cycle of improvement, deterioration and re-improvement, which has obvious different stages. The distribution of labor among manufacturing industries is quite unreasonable and inefficient in northern and middle parts of Jiangsu Province. Finally, using random effect model, the regression analysis on the factors which affect manufacturing structural change effect showed that reforms on structure of both ownership and foreign capital, industrial agglomeration are positively and significantly correlated to structural change effect, while pre-tax profit ratio is negatively and significantly correlated to structural change effect.