Factor Endowments, Catch-up Strategy And Industrial Restructuring

This paper mainly study the correlations among factor endowments, catch-up strategy and industrial restructuring. Taking into account that Secondary Industry is the body of national economy, we focus on factor endowments, catch-up strategy and the proportion of Secondary Industry, and also propose 3 hypothesis to be tested:1.with the increase of factor endowments, the proportion of the secondary industry will firstly increase and then decrease; 2.keeping other conditions unchanged, there exists a positive correlation between catch-up strategy and the proportion of the secondary industry; 3.with the further reform of market economy, the effect that catch-up strategy impose on the proportion of the secondary industry will be weakened.Then we verify these hypothesis using provincial panel data. At last, we do some empirical research on the proportion of other industries.Catch-up strategy has a negative correlation on the proportion of the first industry and has a positive correlation on the proportion of the third industry; factor endowments has a negative correlation on the proportion of the first industry and does not has an outstanding correlation with the third proportion of the third industry.As to this paper, we make 3 contributions: Firstly, we make an initial exploration of the correlations among factor endowments, catch-up strategy and industrial restructuring; Secondly, we do a more rigorous empirical test using provincial panel data; Thirdly, we provide a better policy tool, catch-up strategy, for policy-makers.