Research On The Selecting Of Inner Mongolia Leading Industry

Leading industry plays a significant leading role in regional economic industry. It refers to the industries which adopted the advanced technology in their production and whose output values occupied certain proportions. These industries present high growth rate having strong connections with other kind of industries, and furthermore have the strong leading role in whole regional economy developments. In other words, the process of modern economical development is the consequence of replacing process of leading industries. Therefore, choosing a suitable leading industry has a important significance to a sound and rapid economic development.Inner Mongolia, as a big western province of resources, achieved a high speed development of economy relying on the resources development and utilization. However, the developments of any resources enrichment areas are facing the challenge of sustainability. In recent years, we did not take a pure economic growth as the main goal, but devoted for building a resource-conserving and environment-friendly society. Therefore, it is necessary to choose the efficient and sustainable industries as the leading industry to motivate the whole regional economies to attain a sustainable, coordinated and healthy development.This paper applies the theory of industry economics and revolves around the main line in choosing the leading industry in Inner Mongolia by combining qualitative and quantitative analysis, as well as the research method of combining empirical and normative analysis. First of all, reviewing and summarizing the relevant theory of leading industry selections, the basic principles of leading industry selection and the choice of leading industry benchmark are clarified. Based on the aspects of industrial development potential, the industrial correlation, comparative advantages, technological progress and sustainability, the leading industry was chosen to build index system. Then using the method of analytic hierarchy process (AHP) conducting quantitative analysis to industries in Inner Mongolia, the comprehensive ranking is achieved. Furthermore, taking labor, capital, energy consumption as inputs, and the index system as outputs, analyze the effectiveness of industries by using data envelopment analysis (DEA) method. Through combining the conclusions of two methods as well as resource endowments and industrial policy, the dominant industries in Inner Mongolia are concluded. Finally, conducting comparative analysis to the result of empirical analysis and the actual situations of Inner Mongolia and then adding a slight modification in respect to the domestic and international development trend, the overall conclusion is achieved.