A Comparative Study On The Industrial Structure Of Guangdong Province Manufacturing, Based On The Shift-Share Analysis Method

Since the formation of the industrial structure theory during1930s and1940s, there are many economists conducted in-depth research in this field, which greatly promoted the further development of the theory. And the research also provides a rich theoretical basis for the adjustment, optimization, upgrade of industrial structure.Guangdong Province’s manufacturing sector has a higher degree of opening up, processing trade production and exports of most products. There are a lot of foreign-funded enterprises. Many labor-intensive manufacturing enterprises retain OEM production, lack of innovation. And the core technology is often in the hands of developed countries. Guangdong Province’s manufacturing sector suffered a heavy blow to the financial crisis, its industrial structure therefore becomes more prominent, causing a more widespread concern. Guangdong Province’s manufacturing sector, in order to achieve sustainable development and to promote the optimization and upgrading of its industrial structure, has to strengthen the rational guidance related to industrial policy, give full play to the basic role of the market in resource allocation process, achieve optimal allocation of resources, promote industrial space transfer so as to achieve the rationalization of industrial structure. At the same time, it has to increase R&D investment, to improve the competitiveness of manufacturing products, relying on science and technology innovation. And it has to converse the industrial structure from achieving low added value to achieving high added value, in order to achieve high-class industrial structure.This paper, based on the theory of industrial structure, uses the regional industrial structure optimization criteria to judge the industrial structure of the manufacturing industry in Guangdong Province. It starts to expand discussion from the current situation of the development of the manufacturing industry, hoping to find the direction of promoting manufacturing rationalization and advancement of industrial structure in Guangdong Province. This paper describes the current research situation and the theoretical basis for optimization of the industrial structure of the region. It uses the Shift-share analysis method to study the status of industrial structure of manufacturing industries in Guangdong Province, referencing to the national average level and the eastern provinces with a comparative analysis. This paper reveals the low proportion of Guangdong Manufacturing output in most industries, the leading industry advantage not strong, the lack of independent innovation and other structural aspects of problems. And further the causes of those problems were discussed. Finally it puts forward relevant suggestions to promote the optimization and upgrading of industrial structure in Guangdong Province manufacturing.