Division Of Labor,Technological Progress And Industrial Upgrading

With the high-speed economic development, the upgrading of the industrial structure is also showing some more rich and varied forms; the reasons and mechanism have also become more elusive. Earlier studies’ perspectives and methods may have not quite fully explained many problems that occur during upgrading of industrial structure nowadays. Thus, unlike the previous studies, this paper focus on the middle demand perspective which take the division of labor for representatives and technological progress as the representative of the supply perspective to study the ugrading of the industrial structure. Meanwhile, using the new classical economics as an analytical framework by ultra marginal analysis method makes it easy to explore the internal mechanism of the evolution of division of labor, technological progress and industrial upgrading. Then analysis some specific problems faced and proposed in the process of the industrial structure upgrading to make some corresponding improvement suggestions.On the theoretical level of analysis, first, after reading the relevant literature about the theory of labor division, technological progress and industrial upgrading, we can conclude that, compared to the allocation of resources, the organization of labor division become a better perspective of industrial structure upgrading research. Then, atfter analysising the data of China’s industrial structure upgrading over the past few decades, we pointed out that China’s industrial structure upgrading evolution process is commom from the vertical perspective, and becomes very different from the horizontal perspective. Finally, through the analysis of existing mathematical model, we discovery that, although the biochemical process of technology has been rather perfect, most existing theoretical models which explain the upgrading of industrial structure is still using the analytical framework of new classical economics, so for this purpose often draw some conclusions unrealistic, so we try to construct a model which has already considerd the biochemical progress of the technical using the neo-classic economics analytical framework, and come the following conclusions: First, there is not a simple linear dependence between the division and the upgrading of industrial structure, instead there is a threshold value, which is determined by the efficiency of the transaction; Second, after crossing the threshold, the division significantly promote the industrial sector and the development of the service sector which promoted the upgrading of industrial structure division; Third, after crossing the threshold, the division significantly promote the formation of R&D market, so the division also promoted technical progress; Fourth, technological progress promote the productivity of the industrial sector, thus promot industrial upgrading.On the empirical level of analysis, depending on the purpose of the study, not only do we use a variety of multivariate statistical analysis techniques, but also quantitative analysis models. The purpose of multivariate statistical techniques is to form a system quantitative description by constructing index (or index system) on the division of labor, technological progress and industrial upgrading. The quantitative analysis model is designed to test some of the propositions put forward in our theoretical model building process. According to the results of empirical analysis, we find that, there is a non-linear effects and interaction between the division of labor, technological progress and industrial upgrading, which is consistent to our theoretical models’conclusions, and thanks to the improving measurement technology, we can draw some more extensive economic implications:First, the technical progress of upgrading the industrial structure has an inverted U-shaped relationship in the whole, but if divided into inland and coastal areas view, more inland areas showed inverted U-shaped, while the coastal areas more performance for the U-shaped relationship; Second, the whole division of labor and technological progress have a good interaction between each other, and inland regional this performance is more obvious, while the performance is not obvious in coastal areas; Third, promoting effect of technological progress on the upgrading of industrial structure is stronger than the effect of the division of labor to promote the upgrading of industrial structure.Finally, in the conclusion section, we point out that, as the world’s largest developing country, the Chinese economy has presented such serious problem as the unbalanced regional development, industrial structure upgrading lag problem andso on. So the main idea to promote the upgrading of industrial structure is to cutdown the transaction costs, improve transaction efficiency, and promote the evolution of division of labor in order to stimulate technological progress, accelerate industrial upgrading process. Along these lines, we discussed respectively from three aspects, that is, the division of labor within the industry, the division of labor between industries and division of labor between markets.