Shandong Province, Industrial Competitiveness Analysis

Market economy is competitive economy. In market economy, all enterprises, industries and regions are to participate in competition. The significance of research on regional industrial competitiveness is to seek for and cultivate highly competitive industries through comparative advantages and to further strengthen the industrial competitive advantages for better returns.Shandong is an important big province in China's economy development. Since China's opening up, Shandong's economy has achieved a rapid and continued growth. Industry Structure Adjustment and Promotion is one of important power to support and maintain such a growth. The practice proved that Industry Structure Adjustment and Promotion is not only an important source of economy growth, but also an vital component of economic comprehensive competitiveness. Industry Structure Adjustment and Promotion, namely resetting resources among various industries, boosts the labor and capital to shift from department with low productivity to department with high productivity. It improves collaboration between departments, and reduces economic unbalance degree. Thus it becomes an important attribute to improve productivity and an important component of economic comprehensive competitiveness.At the middle and later period of 1990s, Shandong's development was in a vital transition time. The contradiction of Industry Structure has become a major problem that affects current and future Shandon's economy development. Strategic adjustment of industry structure and comprehensively improving industrial competitiveness are the objective request for adapting changes in domestic and overseas economic environment and for exploring economic growth potential. It is also an important guarantee to realize the fundamental change in economic growth's method, to improve the quality and effectiveness of economic growth, and to enhance the ability of economic development.On the basis of realizing Shandong's current position of industry structure and its evolution tendency, the paper focuses on discussion of scientific analysis on thestatus, weakness and strength of Shandong's industrial competitiveness in the nation and among coastal provinces. Furthermore, the paper gives some proposal on overall strategy and suggestion of improving Shandong's industrial competitiveness. In order to make sense by data, a diagnosis method is applied in the paper, which includes comparison method and principal component method. The course of analysis divides into three steps. First, we analyze the comparative advantages of the industries. In this step we compare the development of different industries in the same region. Second, we analyze the competitive advantages of the industries. In this step we compare the development of the same industries in different regions. Last, we study the trade index of the industries to decide the trade competitiveness.The paper consists of five parts: Part one puts forward the issue and points out the paper's structure; Part two begins with the connotation of the regional industrial competitiveness, then analyzes the basic theory of it and the decided factors; Part three analysis the present situation of Shandong's industries; Part four analyzes the ability of Shandong's industrial competitiveness by diagnosis method; Part five summarizes the features of the development of Shandong's industries and puts forward the promotion methods of the industrial competitiveness. By analysis of diagnosis method, it is concluded that:The first, Shandong's overall competitiveness is in a leading level in the nation. However, compared with Jiangsu Province and Guangdong Province, there are still some gaps. The second, at present, the Shandong' s industry structure represents industry- emphasized characteristics. The results of comparison of provincial industries' competitiveness show, capital-technology-intensive industries are stronger than labor-intensive industries, which indicate industry structure has been promoted in certain degree. Compared with other eastern costal provinces, the advantaged industries of Shandong still emphasize on some traditional industries. Industries with high technology and new technology develop rapidly, but its percentage in manufacturing is still low. Compared with some eastern costal provinces, the competitiveness is obviously weak. High-consumed energy manufacturing causes huge investment and great energy consuming.Therefore, the paper indicates the following methods to improve current situation.The first, attracting foreign investment to reform and improve technology level and products' quality in traditional industrial department. The second, guiding manufacturing's direction of investment and development by high technology and new technology. The third, positively develop electronic information equipment manufacturing. The forth, develop industry colony to boost construction of advanced manufacturing base. The fifth, develop circulation economy and pay attention to its sustainable development.The innovation of this paper lies in: it proposes a different analysis framework and target system, which are different with former analysis on region industry's competitiveness. It classifies industries' competitiveness by using three dimensions tables, which enables to observe industries' position and status more directly. The data is very sufficient, 36 industries withl5 targets in 9 provinces and cities in 5 years data are involved. That is a major characteristic of the paper. Due to limitation of the author's knowledge and study condition, the paper may remain some deficiency, which will wait for improvement in future research.