For a long time, China has attached great importance to the economic growth rate, mainly rely on a large number of factors of production inputs to promote economic growth. This development model leads to lower quality of economic growth, which mainly embodied in three characteristics in the industrial sector: high input and low output with low level of technology, high emission and high pollution, the industrial structure is not coordinated. This high investment and extensive mode of growth has been a serious threat to the long-term sustainable growth of China’s economy. The transformation and upgrading of the industrial development should focuss on the structural reform of supply-side, constantly improving factor supply and allocation efficiency, adjusting and optimizing the industrial structure, fundamentally change the industrial mode of development, promote the industrial structure and the level of development of the overall optimization and upgrading.The structure analysis method based on factors reallocation and industrial structure change helps to reveal the fundamental driving force and reason of industrial development. Reference the cross-industry panel data of Gansu and China, this article investigated the changing tendency on industrial structure of Gansu by calculating the structural changing scale and its capital-intensity. Besides,this article tested and calculated the reallocation efficiency of labor and capital factors among industries by using the improved ―Wurgler‖ model, which could measure the sensitivity of the flow of factors of production to the total factor productivity. Finally, this article make an analysis of the reliable path of industrial transition to upgrade in Gansu province. The empirical results show that, during 2000-2014, industrial structure changes in China was adjusted from capital-intensive industries to labor-intensive industries, especially in some technology-intensive industries, such as Electronic and communication equipment manufacturing, Transportation equipment manufacturing and Electrical machinery manufacturing, however, the capital intensive tendency of Gansu industry strengthened, labor factors flow into the mineral resources and heavy chemical industry, such as Coal mining, Oil exploration, Chemical materials and chemical products manufacturing. Gansu’s regional characteristic industry obtained a very good development, the aggregate capital stock per worker in industry constantly increasing, the agglomeration ability of factors continuously strengthening. However, the scale-orientated factors allocation and industrial structure change have a negative effect on the productivity growth of the whole industry, the flow of factors to high productivity sectors is short of efficiency, some departments which lack of efficiency take up a lot of production resources, further reducing the reallocation efficiency of production factors. Besides,the development of technology-intensive industries is unsatisfied, labor and capital factors has flowed outward, the scale of emerging industry has not yet been developed.On these grounds, this article give suggestions as follows: firstly,the process of China’s industrialization and factors reallocation appears the scale-orientated characteristics, large-scale and state-owned enterprises obtain a more favorable environment for development, therefore, to further adjust and optimize the industrial structure, the government should weaken its authority to allocate production resources,accelerate the reform of factor market, improving the efficiency of factors reallocation. Secondly,the paper have shown that Gansu’s pillar industries have a good performance in production efficiency, it is necessary to take advantage of this competitive industries and expand its industrial chain helps to improve the competitiveness of the traditional industry. Thirdly,some new technology such as intelligent manufacturing and the Internet of Things is quietly changing industrial production process and way of development, industrial development strategy should timely adjust the direction and focus, increase investment in higher education and scientific research, developing the industrial technology degree. |