Comparative Analysis On The Comprtitiveness Of Manufacturing Industry Between Zhejiang And Jiangsu

In the wake of the gradual penetration of economic globalization, rapiddevelopment of high-tech and preliminary establishment of global buyer-market, theinternational industrial competition becomes increasing stronger. Therefore, industrialcompetitive power turns into the crucial factor for countries or regions to strive forinternational economic status. However, with the constitution of Chinese socialistmarket economy, industrial competition between regions has been the most obviousrepresentation of economic competition. Hence, industrial competition between regionsbecomes the vital factor to determine the regional economic development. In otherwords, it is very important to do some systematic researches about comprehensivestrength of regional industry. The researches refer to how to scientifically evaluate thecomprehensive strength of regional industry and how to accurately retain competitiveadvantages of regional industry in the local and global markets. In the light of theseresearches, government can set relative trade policy as well as appropriately interveneand control regional economy.This report chooses Zhejiang’s and Jiangsu’s manufacturing competitive powers todo horizontal and vertical comparisons. There are several reasons:Zhejiang and Jiangsu (Z&J) are the comparative advanced provinces in China. Inaddition, these two provinces have proximal GDP. Hence, it seems meaningful tocompare the correlative data of Z&J.China is good at manufacturing, and Z&J are still good at manufacturing as well.Hence, these two provinces also have similarities.Multi-national enterprises and state-owned enterprises lead Jiangsu’s economy,whereas private enterprises contribute for Zhejiang’s economy. In the aspect ofmanufacture and economic development, there are distinct differences betweenthese two areas.Therefore, this paper select Z&J to compare and analyze industrial competitivepower, which is realistic and meaningful. This piece combines the academic theories about analytical framework ofindustrial competitive power and practical examples (shift-share method), and thenintroduce analytic hierarchy process. Shift-share method divides manufacturing raiseinto three parts: Nij, Pij and Dij. Based on it, analytic hierarchy process evaluates thefactors which influence industrial competitive power, and then divides them into twoparts: structural factors (SF) and competitive factor (CF).Moreover, based on shift-share method and analytic hierarchy process, it putsforward competitive efficiency (Eij). In the piece, competitive efficiency is defined asintensity of competitive competency. Eij=(SF+CF)/NijThen it makes horizontal and vertical comparisons between Zhejiang’s economyand Jiangsu’s economy, in terms of classification of manufacture from “*” index andcompetitive efficiency. As a result, it facilitates to find out Z&J’s self-strengths and–weaknesses and compare these factors to achieve their strong and weak industries.Meanwhile, analytic hierarchy process assists to present the diverse reasons forindustrial development situations (same industry in different provinces and differentindustries in same province).Ultimately, this report will point out conclusion and bring forward reasonable andappropriate recommendations.