Efficiency Of Manufacturing Investment In The Context Of Industrial Restructuring

Nowadays, domestic and international macroeconomic problems are very acute, the manufacturing industry especially labor-intensive industries are facing that labor and raw material costs increased substantially, resulting in a large number of small and medium-size firms find it difficult to maintain normal production and business activities and even go bankruptcy. the overall profit margins are considerably squeeze by the high operating costs and slowdown of manufacturing revenue growth or even Manufacturing revenue growth. In the first half of2012, Chinese manufacturing company interim profit is collective diving, sounded the alarm bell for the economy, which BYD’s net profit fell90%in the half of2012, FOXCONN’s losses expanded consistently. The textile and garment manufacturing companies are also facing the embarrassment of decline in, Li Ning Group released the first annual loss warning g after going public in HK,whose report are of a series of flashing red lights. To some extent, collective diving interim profits of domestic manufacturing companies are caused by the downturn of macroeconomic, market demand, manufacturing and its own lack of innovative capacity. This reality could also expose the problems of product homogeneity, the same phenomenon is particularly evident in the apparel industry which lack of innovation, and the steel industry which is suffered overcapacity. Many manufacturing enterprises are lack of innovative capacity, the "swarm" business philosophy led to serious product homogeneity, resulting overcapacity and low competitiveness.Manufacturing industries occupy an important position in the development of a country’s economy which cannot sit back the trend of recession. The US return to value the manufacturing sector after the financial crisis, precisely because the manufacturing industry plays an irreplaceable role in the stability of the country’s economic development. The key to reversing the manufacturing crisis lies not in the government to introduce fiscal and monetary policy to stimulate demand, but to enhance the competitiveness of the manufacturing sector in the long run, therefore, the manufacturing sector needs urgent upgrading. The upgrading of the manufacturing sector needs to take a long time, and may lead to a decline in overall performance and efficiency in a period of time, but once the transition is successful, which could bring powerful competitiveness and sustained high profits. This article start from the background of Chinese industrial transformation, focusing on the efficiency of manufacturing investment in the research context of industrial restructuring changes, which strive to find the necessity and reality of transformation.This paper introduced the basic theory of industrial restructuring and investment efficiency, which are focusing on the mechanism of interaction between industrial restructuring and investment efficiency at the same time. This paper combine the use of general studies and empirical research to analyze it.Empirical analysis using data envelopment analysis method to calculate the efficiency of investment in the manufacturing sector, thus can get more accurate and objective analysis of the relationship between the two to provide evidence for policy makers.This paper is divided into five major, based on the content can be divided into the basic theory of General, industrial restructuring and investment efficiency, the relationship between industrial restructuring and investment efficiency analysis, the empirical analysis of investment in manufacturing efficiency in the context of industrial restructuring and empirical conclusions and countermeasures.Part I:introduction. Generally, this part analyses the issue’s context and the significance in theory as well as practice. Then reviewed the research status of industrial restructuring and investment efficiency as well as the relationship between the two, the existed research achievement is also summarized.Part II:the theory of industrial restructuring and investment efficiency. This section is mainly from the upgrading of industrial structure, upgrading of enterprises and industrial clusters of three to examine industrial transformation, which emphasis to examine the industrial transformation from the microscopic point of view. What’s more, introduce the basic theory of investment efficiency from the cost and income of investment, in addition, several investment efficiency evaluation method are also contained.Part III:the analysis of the relationship between industrial restructuring and investment efficiency. To begin with, the evaluation of industrial transformation are introduced detailed which include industrial transformation coefficients, Hoffman coefficient and softness discrimination law. Secondly, analyzes the relationship between investment efficiency and technical efficiency, scale efficiency profoundly. With regard to investment efficiency and technical efficiency, first introduced the relationship between technological progress and technical efficiency, then expound the relationship of technological progress and industrial upgrading from the angle of AU model. In addition, the analysis of investment efficiency and scale efficiency is similar, first describes the relationship between the economies of scale and scale efficiency, and then analyze the relationship between the economies of scale and industrial upgrading.Part IV:The efficiency of manufacturing investment in the context of industrial restructuring empirical analysis. The evaluation indexes are constructed in reference to previous studies at the first. Then introduced the empirical analysis methods and tools-DEA method. Then calculate and analyze the efficiency of investment of manufacturing sector in three provinces of Jiangsu and Zhejiang Guangdong recent years.Part V:empirical conclusions and countermeasures. The results can got from the theoretical research and empirical analysis, which can be seen as the foundation of decision.