Chinese Infrastructure Empirical Research On The Effect Of Industrial Sector Output

Our thesis studied the productivity effects of China's infrastructure and social infrastructure applying a translog cost function approach and the pool data of China's industrial department. Not only do we use the aggregated index of infrastructure, we also use classified indexes in our regression. The same techniques were applied to the study of social infrastructure. After that, we used the pool data of the high-tech industries alone in our regression to study the topic of industrial structure adjustment in China. We hope it would help us give some policy suggestions from the scope of infrastructure.Our regression provided the following conclusions:Firstly, infrastructure has significantly positive productivity effects and the number appears an increasing trend. Communication has bigger productivity effects than transportation and energy.Secondly, the productivity effects differed in specific industries.Thirdly, Social infrastructure has significantly positive productivity effects while the number was smaller than infrastructure. R&D has bigger productivity effects than education and sanitation.Fourthly, Communication and R&D contributed most to the rapid development of China's IT industry. All categories of infrastructure and social infrastructure had no positive productivity effects to Pharmaceutical Industry and instruments and office machinery industry.Fifth, on average, to the high-tech industries, communication and R&D has biggest productivity effects in its kind.According to our regression results, we pointed out that government should take the investment in communication and R&D as a priority. To help the industrial structure to adjust, the government could consider investing more in social infrastructure. The problem of "government failure" needs to be deal with to improve the efficiency. And finally, despite of the construction of infrastructure and social infrastructure, the government should pay attention to the reform of some systems in the high-tech industries which hinder its growth.