Research On The Influence Of China's Factor Market Distortion On The Upgrading Of Industrial Structure

Since the reform and opening up,the economy of our country has witnessed unprecedented rapid development with rapid growth of the total economy.However,with the global economic globalization and the global economic crisis spread in recent years,the global economy has generally declined and the economy of our country has leapt Style development has also slowed down.The comparative advantages of the initial reliance on primary factors of production have become increasingly apparent in our country.The extensive mode of production brings about such problems as waste of resources,environmental pollution and the low-end of the industrial chain.The lagging industrial structure seriously inhibits the level of economic development in our country.Therefore,the upgrading of industrial structure is an important way to solve the current problems.The free flow of production factors among industries and the optimal allocation of resources are the keys to the optimization and upgrading of industrial structure.At present,the distortion of the price of production factors in our country did not play the role of correctly reflecting the scarcity of resources and failed to bring the allocation of resources to a balanced state under the influence of the market and hindered the optimization and upgrading of the industrial structure.Therefore,this article intends to explore the issue of upgrading the industrial structure from the perspective of factor price distortions,and to explore the mechanism and impact of the distortion of factor prices on the optimization and upgrading of industrial structure,and put forward policy recommendations accordingly.This article mainly includes the following content.First,the definition of elemental price distortions is clarified.The main measurement methods of elemental price distortions in historical documents are reviewed.The causes of elemental price distortions and the effects of price distortions on production factors are analyzed.And use the Cobb-Douglas production function to measure the degree of capital price and labor price distortions in 29 provinces(autonomous regions and municipalities)in China from 1990 to 2015.The second is to explain the current situation of industrial structure in our country and to analyze the key factors affecting the upgrading of industrial structure Thirdly,using the Theil index and the output value of the third and the second industry after the forward adjustment as the indicators of the rationalization and the advancement of the industrial structure,it is necessary to establish the rationalization of the industrial structure through the price distortion of the factors of production and the rationalization of the industrial structure.And the empirical model of the impact of high-level impact,the factors that affect the rationalization and the advancement of the industrial structure by factor price distortions are calculated,and the results are reasonably explained.Fourthly,relevant countermeasures and suggestions are proposed according to the empirical results,Structure rationalization and advanced provide feasible solutions to promote the optimization and upgrading of China's industrial structure and economic sustainable development.The main conclusions of this paper are as follows: First,this paper measures the degree of price distortion of capital and labor factor in 29 provinces(autonomous regions and municipalities)in China from 1990 to 2015 through the Cobb-Douglas production function method,and finds that the two factors of production both show negative Distortion means that the real price of capital and labor is lower than the marginal product.Second,the historical reason for the distortion of factor prices in our country may be that in the mid-to-late 1980 s,our country experienced a shift from a planned economy to a market economy.In the process,institutional factors left behind the monopoly and market failure of the factor prices in our country Affected thereby being artificially depressed phenomenon.Third,judging from the long-term historical trend of distortions in capital and labor prices,capital and labor prices are both negatively distorted.However,capital price distortions have gradually declined while labor price distortions have seen an upward trend overall.Fourthly,from the empirical results of factor distortions on the rationalization and advancement of industrial structure,the distortion of factor prices will largely inhibit the upgrading of industrial structure.Based on the empirical results,the paper proposes the following countermeasures: First,relax the access threshold for labor market and capital market.Second,accelerate the formulation of industrial policies that are in line with the laws of economic operations.Third,formulate and implement policies and measures to promote the transformation and upgrading of regional industries.