Change Of Industrial Structure In Western Region Impact On Economic Growth

Implementation of regional development policies of western development has been more than a decade, The region’s industrial structure in the joint action of both supply and demand factors have been significant changes. Changes in the industrial structure will guide labor, capital and other production factors flow from the lower productivity sectors to a relatively high productivity sector, which will undoubtedly promote the improvement of overall productivity, thus affecting economic growth. During this period, the total economy in the western region have risen to a new level, in addition to the contribution to economic growth from the rapid increase in production factors, the "structural effects" also played an important role. China is vigorously adjusting the economic structure and transforming the mode of development. Promoting the development of the western region is under the background, the development of the western region’s economy can not only rely on cheap labor and abundant natural resources, but also on optimizing the structure to drive economic growth.This paper first reviews the relevant literatures on the study of industrial structure changes impact on economic growth, These studies not only analyze deeply the intrinsic relationship between them, and conduct the empirical analysis from different periods in different areas. Second elaborate the industrial structure change theory, theory of economic growth and industrial structure change impact on economic growth. Based on the expansion of the Solow model, take the industry structure indicators into the framework of economic growth, and build up mathematical model. In order to clear the overview of industrial structure and economic growth in the western region, need to analyze the economic situation and industrial structure changes during 2000-2012. Comparative analysis of ordinary panel model first, and then into spatial effect to analyze the industrial structure impact on western region economic growth and the spillover effects, the results show that the western region industrial structure changes on economic growth has a strong role in promoting and spillover between regions is obvious.According to this study argues that:First western region’s industrial structure evolution path is in line with the general variation, but relatively slow.Second from the national perspective, although a single industry in the western region because of the rich natural resources of labor is competitive, western region do not have the advantage of integrated industrial structure. Third impact on western region’s economic growth, structural effect is more obvious than the factor inputs contribute to the economic growth rate. Fourth there is a strong spatial dependence between the western region’s provinces, so must be considered in the future of the industry layout, rather than the fragmented development.