Research On The Role Of Government In Industrial Transformation And Upgrading

Traditional industries in Cangzhou City account for a large proportion of the total economy in the city, and it is the city’s economic backbone. Its upgrade and transformation is the key to ensure the sustaining, healthy and rapid development of economy and society. This paper analyzes the current situation and development of traditional industries in Cangzhou City. Affirmingthe contribution of traditional industries made to the city’s economy, this paper focuses on the reasons why traditional industries have encountered difficulties in transforming and upgrading, utilizing the analysis on the internal and external factors that affect industrial transformation and upgrade,and economic functions played by the government. Thermal analysis of the industrial transformation and upgrade is to find out the role government should playand to provide corresponding advice and suggestion according to the actual situation in Cangzhou City.Industrialtransformation and upgrade in Cangzhou Cityhave encountered many problems. It is often constrained by some factors such as the government policy guidance, funding and poor driving force. Inthe early stages of transition,it could not be effectively implemented. Affectedby the downward pressure on economy and national policies,usually the mid- or post-transition development is not as ideal, and therefore, causesthe difficulties of industrial transformation and upgrade. As a result, in order to ensure the solid implementof industrial transformation and upgrade, it is necessary for the government to play its economic functions and put forward corresponding measures to restructure and upgrade traditional industries. That means the transformation and upgrade of traditional industries can not simply rely on its own strength and market. It is necessary to create a good platform for the development and the environmentthrough government guidance and support.This paper is divided into six parts. The first part is an introduction. Firstly, research background and significance of this topic--the role government has played in transformationand upgrade of traditional industries in Cangzhou City--will be demonstrated.Then, the current research will be reviewed, and main contents will be summarized.The second part describes related theory of government’s economic functions and industrial transformation and upgrade. First, it explains the mass industrial restructuring, industrial upgrading, and other related concepts and the necessityfor transformation and upgrade, and then describes the content of current Economic Functions of Government and the lack of economic functions played by local governments at this stage.The third part describes the overall economic situation and the present situation of the leading industries in Cangzhou City. Certainly, traditional industries have contributed to meeting the needs of residents living, providing jobs and enhancing regional competitiveness, etc.This paper also will also point out the developmental bottlenecks they are facing. Combinedwith "the Belt and Road" policy, Collaborative Development of Beijing,Tianjin and Hebei Province policy, new Environmental ProtectionLaw, Reform of the supplyside and other policies and regulations, this paper will explain the opportunities and challenges faced by traditional industries.The fourth part analyzes the government policiesand measures, existing problems in Cangzhou City and successful experiences in Yantai City. First, it elaborates specific measures promoted by the government to grasp the project, promote investment, collaborate with Beijing and Tianjin, restructure traditional industries, promote transformation, deepen reform, expand opening up, and environmental governance, etc. and the effects that government has brought to industrial transformation and upgrade. Then it analyzes the deficiencies and problems encountered in the implementation process of the policy, such as the faultiness of certain policies, less funding, and poor enforcement. Finally, by analyzing the successful practice in Yantai City in-depth, we get a lot of valuable experiences in the transformation and upgrade.The fifth part is policy recommendations. Aiming at the problems Cangzhou City has encountered when transforming and upgrading of traditional industries and misunderstandings of government functions, weconclude that industrial transformation and upgrade of Cangzhou City cannot happen on its own, and it needs government intervention, guidance and support. Therefore, according to existing policies and current industrial conditions in Cangzhou City, this paper provides suggestions and advice for government to further play policy guidance and increase policy enforcement.The sixth part is conclusion. By researching issues and problems Cangzhou City has encountered during the process of industrial transformation and upgrade, we fully affirm the important roles traditional industries have played in economic development; however, to further implement industrial transformation and upgrade, the government should give full play to the guiding role of policies and positive efforts to increase policy enforcement.