Guangdong Industrial Upgrading Influencing Factors And Path

Economic growth is always accompanied by industrial upgrading; successful industrial upgrading of East Asian countries in the last century made it the focus of academic research. Right now, China is experiencing industrial changes, especially on the eastern coastal areas. As labor becoming scarce, capital and technology are much more important sources of economic growth. Guangdong, the most economically developed regions in China, is eager to industrial upgrading. By comparing the Korean model of economic development with Guangdong Province, this paper would research how to achieve industrial upgrading in Guangdong.The factors that promoted industrial upgrading of South Korea can be summarized as government-led, technological progress and changes in the international environment in terms of industrial upgrading; some valuable experiences can be summed up, mainly about the government policy and the national innovation system formation. Using 1978-2009 data, we estimated the growth rate of the total facctor productivity (TFP) of Guangdong, made a regression coefficiation of the output elasticity of capital and labor, and found two significant conclusions:first, the growth rate of TFP in Guangdong Province decreased since recent years; second, the hypothesis of constant returns to scale was well supported by data.This article is devided into seven chapters. The first chapter introduced the research background and the basic research ideas, demonstrated the innovation and lack of my study; chaper two consolidated the relevant literature and theories, further emphasized the difference of this paper with the previous study; chapter three researched South Korea's experience of industrial upgrading, summarized the factors affecting this process, the main path and effectiveness; chapter four shows an overview of the economic development of Guangdong Province and its current situation, analized the motivation of its industrial upgrading, and listed the main measures to promote industrial upgrading in Guangdong; chapter five estimated the growth rate of TFP in Guangdong, found that technological progress has made important contributions to the economic growth of Guangdong, but recently, especially in the 21st century, the growth hit the bottleneck, technological advances need a further breakthrough; the sixth chapter capared the industrial upgrdaing model and experiences of South Korea to Guangdong, summed up the valuable measures of South Korea that can be provided to Guangdong, we also listed the current problems in the industrial upgrading process of Guangdong; the last chapter summarized for the earlier studies, and put forward some policy recommendations.