Empirical Analysis Of The Equipment Manufacturing Industry And Economic Growth In Guangxi

Equipment manufacturing industry is the strategic industry that provides technology and equipment for others, and is the core and foundation of the the whole industry. From2000to2009, with the accelerated process of industrialization, Guangxi equipment manufacturing share of GDP has gradually increased and has become an important pillar industry in the national economic development. So it is necessary to study the relationship between the equipment manufacturing industry and economic growth, to identify factors restricting economic development, and to explore methods promoting economic growth.At present, Guangxi’s equipment manufacturing industry is booming, and continues to maintain a high growth rate. while booming, it is also faced with uneven industrial layout and the low level of industrial clusters. Therefore, to study the industrial structure of Guangxi equipment manufacturing and the role of industrial upgrading in promoting economic growth is meaningful. In this paper, time series data model, from1989to2009, is built to test the relationship between economic growth and development of equipment manufacturing industry, to analyze the relationship between economic growth and development of equipment manufacturing industry. Therefore, we can provide recommendations and make a good use of the equipment manufacturing industry to develop our economy.The main conclusions of this paper are:Firstly, the speed of development of equipment manufacturing industry in Guangxi is high, but we can not ignore the unbalanced development in various industries. Secondly Guangxi equipment manufacturing industry cluster areas are unevenly distributed, and the degree of clustering is low. Thirdly in the short term, there is a significant and stable equilibrium relationship between the equipment manufacturing industry and economic growth, the equipment manufacturing industry is the Granger cause of economic growth, but the opposite is wrong. Fourthly, by the VAR model test of the impulse response function, we can find a positive relationship between the equipment manufacturing industry and economic growth.Finally, corresponding policy recommendations are given:(1) We should raise the value-added services, change the production-oriented manufacturing into a service-oriented manufacturing.(2) Strong pillar industries, play the geographic advantage, and actively explore the ASEAN market.(3) Improve the science and technology absorption and transformation capabilities, develop the high-end manufacturing.(4) Undertake the eastern industrial transfer to innovate and develop the industrial clusters model.(5) According to the Guangxi local characteristics, providing a good environment for the development of equipment manufacturing industry.(6) Implement human resources strategy to improve the quality of the equipment manufacturing industry practioners.