A Mechanism Study On The Effect Of Infrastructure To Chinese Industry Upgrading

The article analyzes the mechanism of Chinese industry upgrading on the basisof infrastructure (including the "hard" and "soft" infrastructure). Specifically, hardinfrastructure promotes the intensive margin and extensive margin of Chineseenterprise export by reducing transaction costs (including fixed and variable cost),promoting the industry scale and Chinese industrial upgrading laterally. Softinfrastructure especially Intellectual property system provides the match systemprotection to help companies reduce the risks during R&D enhances the level ofenterprises’ technology, promotes industrial upgrading longitudinally.The article builds the theoretical model of the mechanism of infrastructure toChinese industry upgrading based on the new structural economics and trade Melitzheterogeneous enterprise model. Besides, it measures the general level of hardinfrastructure (including traffic, telecommunication, resources) and softinfrastructure (intellectual property system) with factor analysis method. At last, itdraws Chenery’s “standard structure” model to check the direction and extend boththe hard and soft infrastructure’s effect to industrial upgrading. It proves that bothhard and soft infrastructures have positive incentive effect on the upgrading ofindustrial structure in China, but hard infrastructure is more significant.The infrastructure is exogenous and soft infrastructure construction started latelyfor Chinese enterprise, it is duty for the government to exert their functions,strengthen the construction of intellectual property system in both domestic andforeign levels, and strengthen the culture of intellectual property expertise.