Analysis Of Factors Influencing The Structural Upgrading Of Equipment Manufacturing Industry In China

Equipment manufacturing industry is the basis of one country’s industrial productivity and economic growth, it is a symbol of Chinese made as well as our national image in the world, so working on the upgrade of equipment manufacturing industry inside is of great importance. After analyzing the current development of equipment manufacturing industry in our country, the author find out five main factors which may have effect on the structure of equipment manufacturing industry. Then, we put emphasis on these factors about how they impact equipment manufacturing industry structure exactly. In order to prove if these factors really have influence on equipment manufacturing industry structure, and if so, how much they can? In this paper, we use grey relational analysis and principal component analysis which are helpful to build an econometric model based on1999-2011data relating to equipment manufacturing industry. The empirical shows that R&D intensity、foreign companies’activities、 industry concentration、international trade、capital-output ratio and labor productivity have positive effect on the upgrade of equipment manufacturing industry structure while state-owned economy has a negative effect on it. Finally, it is suggested that if we intend to modify the structure of equipment manufacturing industry, we need to do something on independent innovation n personnel training、international trade structure、foreign investment、industry concentration and policy regimes respectively.