The Effect Of Industrial Structure Change On Economic Growth In China

The effect of industrial structure change on economic growth has been recognized, labor and capital flow to high-productivity industries will improve productivity and accelerate economic growth. This is how industrial structure change promote economic growth. If the impact of China’s industrial structure change on economic growth is as significant as the theory analysis, how the labor and capital is allocated so as to affect economic development. This is the point to research.After reviewing the research, first of all, this paper use descriptive statistical analysis to discuss the changes of China’s industrial structure. Analyze the trend of production structure change and the upgrade of industrial structure. Analyze labor and capital structure change tendency and the rationality of the allocation among industries. Second, measure the overall economic and three industrial total factor productivity, use Syrquin method to measure overall economic industrial structure change effect, use shift-share method to mearuse three industrial industrial structure change effect. Third, establish VAR model to empirical research the impact of overall economic and three industrial industrial structure change effect on economic growth. At last, define the labor and capital factors configuration and the measurement method. Measure the contribution of labor and capital’s allocation among three industries to economic growth.Through the empirical analysis, this paper hope to solve the following problems: will the industrial structure change affect economic growth in our country, and how to influence? If the influence of the change of industrial structure on economic growth exists, then how three industries affect economic growth? How the labor and capital factors flow bring economic growth? By analyzing the empirical results, this paper found: 1.The effect of industrial structure change has a significant impact on economic growth, a positive impact of industrial structure change will promote economic growth. 2.Primary industry’s contribution to economic development in China is low, secondary industry and tertiary industry together support economic growth. But the effect of structure change of the tertiary industry contributes more to economic growth. 3. The labor reallocation effect will promote economic growth. Agricultural labor flows to a modern industry with high labor productivity. The capital allocation effect is not significant. The allocation of capital in three industries is not reasonable brings about low capital allocation effect.According to the empirical analysis results, this paper obtains the related conclusion and suggestion. Effect of industrial structure change has made great contribution to stable economic growth in China. But the industrial structure is not in the optimal state, it should further adjust the industrial structure in our country. For example, agricultural sector labor need to be transferred to the modern department, primary industry’s financing capacity is insufficient and secondary industry has received too much support from capital market, the third industry should become the focus of the future development of our country. Aiming at the problems, this paper gives the following suggestions: 1. Solve "three agriculture" problems by speeding up the process of agricultural modernization and improving agricultural technology, increasing the strength of industry re-feeding agriculture. 2. Adhere to the road of new industrialization, to form a structure with high-tech industries as the leader, basic and manufacturing industries as the support and services industry all-round development. 3. Adhere to new normal economic development policy. Continue structural transformation and encourage industries coordinated development. Through optimizing the allocation of factors of production to achieve economic growth, provide a new growth point for economic development.