A Study On The Convergence And Its Optimum In China’s Manufacturing Industry

As the manufacturing industry developing, a rising problem in industrial structure ishow to be transferred and upgraded. Structure similarity, which mean there are familiarstructure in different areas, became a very important issue. On one hand, in currentstudies, most of them refer to the calculation of the similarity of industry in severalareas, and propose some corresponding suggestions. But those advices did not catchenough attention because of the absence in the theoretical and empirical analysis whichcan tell the decision-maker what or how they should do to improve the economicefficiency. On the other hand, major scholars seem to believe that the optimal intervalexists in the industrial similarity, but we can not find a norm which can be acceptedextensively to indicate the reasonable industrial structure. Therefore, most of the studiesmade less sense.Just based on the two reasons mentioned above, this paper analyze the relationshipbetween industrial similarity and its influence factors in theoretical and empirical points,and comes out some stable results hoping this paper can offer some useful informationto the relevant divisions. First, we recall the former studies and summarize the mainpoints about industrial similarity. At the same time, we will make a remark that can tellwhether the viewpoints are reasonable or not, and why. Secondly, a main view is thatgovernment intervention will result in a low efficiency and then the unreasonablestructure. We stress the role the government plays in the economy development. In thesecond part of the paper we create a model to discuss the role based on some existingones, and get two conclusions. Thirdly, following with the theoretical analysis, we havean empirical study using the data of29smaller industries under manufacturing to provewhether the conclusions above are right. It includes calculating S, MKI, SSI, finding thedifference among them, describing the trend from2000to2010, testing the model, andthen proposing the policy advice. Finally, discussing the existing indexes used to judgethe reasonableness, analyzing the relationship of industry reasonableness, industrysimilarity`reasonableness and the redundant construction and then giving a betterindex.