The Rationalization Of The Industrial Structure In The Economic Region Of The East China Sea Based On SSM Model

The industrial structure not only symbolizes the development level of social economy but also determines its development, so that social economy develops along with the dynamic process of industrial structure being rational, irrational and rational. Since the implementation of reform and open policy, China industrial structure has been optimized for three times after repeated changes in the changing environment of economy. In the past 30 years from 1978 to 2008, China has cruised into the rapid development phase of chemical-focused industry from the mode of primary industry as the focus. Consequently, China has become the new international manufacturing center.Nowadays, the emergence of new technology innovation, the movement of economic globalization, the changing environment of international economy and the transformation of international economy pattern lead to a constantly changing economy environment home and abroad, which brings the conflicts in industrial structure. The economic region of the East China Sea of “three provinces and one city” including Jiangsu province, Zhejiang province, Fujian province and Shanghai city is the pilot area of the new policy. However, as the nationwide industrial structure modification and optimization move forward, problems of the industrial structure of the economic region are paid much more attention. Even though the economic region of the East China Sea is advanced in technology innovation and economy level, it also has the problems with industrial structure, of imbalance between the development of three industries, and the problems of improper allocation of resources. Apparently, as the rapid development of the economic region of East China Sea, it is necessary to optimize the industrial structure.After reading a bulk body of literature, the investigation into rationalization of industrial structure has always been the important for researchers to study economy. The assessment methods commonly used are listed as follows: Standard Industrial Structure Method, Structural Deviation Method, Linear Programming Method, Input-output Analysis and Shift-Share Method. The majority of studies are based on a province or a city, and research of the economic region of East China Sea as a whole is rare. As a result of this, the current study aims to deal with the issue of industrial structure rationalization of the economic region of East China Sea as a whole by employing Shift-Share Method based on Classification of Industrial Structure Method coupled with Standard Industrial Structure Method.First, the data of the economy of the economic region from 2004 to 2013 are divided into two parts each of which concerns the data of five-year period, then the data are analyzed with the help of Shift-Share Method. Preliminary results are concluded based on the horizontal and vertical index analysis of the data list. Then specific analysis of the three provinces and one city can be conducted respectively. The degree of the rational industrial structure of East China Sea is assessed based on the results of the above two procedures. To further the analysis, take the marine economy of East China Sea as an example, the next step is to explore the marine industrial structure of the East China Sea making use of static analysis and dynamic analysis so as to find out the conflicts of the industrial structure.The findings of the empirical analyses are as follows:In comparison with the first five-year period, the superiority of first and second industry of the region weakens with the developing speed lower than that of the national average level. The third industry becomes dominant even though the developing speed slows down to some extent. The economy of the three provinces and one city don’t develop at the same speed, and the industrial structure needs some change. The portion of first industry is relatively small, while the portion of second industry is relatively large but is lack of variety and high-standard business. As for the third industry, it is dominant of all three but seems not to develop as fast as expected. The portion of each of the industry doesn’t take the same share and the three industries develop at different speed making all three industries develop in an imbalanced way which in turn cannot make the best use of the strength of marine industry of East China Sea as a whole.The findings suggest that in the future, economic region of East China Sea should strengthen the regional cooperation by promoting the communication of government, companies and different cultures. Then based on the regional integration, it is important to balance the development of all industries by means of allocation of the resources within the industries and regions. In the meantime, it is suggested that the scope of business of the first industry can be expanded, innovated technology can be applied to second industry, the third industry can be developed vigorously, and the structure of all three industries can be optimized in order to keep constant developing force and stable developing speed.