The Impact On Industrial Structure Evolution Of International Division Of Labor And The Inspiration To China

After the reform and opening up, China insists on export-oriented economic developmentstrategy. Although the ratio of services to industry has improved significantly, the phenomenonthat proportion of the second industry is high, the tertiary industry develop slowly comparing tothe international standard structure is still very outstanding. Coincided with the Financial Crisis,the developed countries’ cry for " re-industrialization " is rising,and " Trade Protectionism" isrising coupled with a weak global economy leads to the lack of external demand. So adjustindustrial structure, and seek new position in international division of labor is imminent to China.Therefore, exploring the relationship between international division of labor and industrialstructure evolution, and drawing on measures of the emerging industrialized countries during theperiod of transformation have important sense on Chinese industry structure upgrades.In this paper, we analyze the relationship of the international division of labor and theevolution of industrial structure from the perspective of demand at first，and propose a theoreticalhypothesis that the international division of labor influence the change of a country’s industrialstructure through the direct effect and indirect effect, and the income effect, correlative effect andthe crowding out effect resulting from that. Then we provide an empirical test with transnationalpanel data of fifteen newly industrializing countries that enter into the mature period ofindustrializing process during the80s of twenty century, and the result is: these newlyindustrializing experience the industrial structure’s transforming to service economy, at the sametime the comparative advantage in the manufacturing industry and the ratio of dependence onforeign trade drop, while the ratio of dependence on domestic final consumption rise. Theeconomic implications are: if these countries reinforce the status of the manufacturing process inthe international division of labor too much and mainly depend on trade in goods to promoteeconomic growth for a long time, the industrial structure’s transforming from industrial economyto service economy may be hindered; but if they reduce their dependence on the trade in goodsand increases their dependence on domestic demand as the comparative advantages of themanufacturing sector drop, the result can be reverse. Later, study the newly industrializedcountries’ representative-Korean how to face to the structure transition. Finally, summarizes theinspiration to China from the conclusions and experience of the adjustment of economic structure.