Research On Influencing Factors Of Upgrading Of Industrial Structure In China Based On Lasso Models

At present,China has entered the new economic normal.Supply structure is firmly advancing because of the supply-side structural reform process.The policy "Three Go One Drop and One Supplement" effect is outstanding,including the industrial structure of the economic supply structure has undergone great changes.In the process of economic transformation and development,it is more important to deeply explore the factors affecting the upgrading of China's industrial structure.Therefore,the purpose of this paper is to start with the theory of upgrading of industrial structure,through the theoretical analysis of the factors influencing the upgrading of industrial structure and use the new variable selection model to explore the factors that have the greatest impact on the upgrading of industrial structure,and to provide more comprehensive suggestions for the upgrading of the current industrial structure.Considering the basic path of industrial structure evolution,this paper will measure the situation of industrial structure upgrading in China from two perspectives of industrial structure—the rationalization and advance of industrial structure,and use the models of Lasso,Adaptive Lasso,Group Lasso and Sparse Group Lasso to measure effects of five aspects on the upgrading of industrial structure,which are resources supply and consumption demand,technological innovation,opening up and financial development.The results of each method are compared to choose.Finally,the most important factors affecting the upgrading of China's industrial structure are obtained.According to the empirical analysis of the factors influencing the upgrading of China's industrial structure,the main conclusions can be drawn: resources supply can provide favorable conditions for the rationalization of industrial structure,but it is the resistance factor in advance of industrial structure.And the consumption demand has less effect on the upgrading of industrial structure and may even hinder the upgrading of industrial structure.The difference between the variables of technological innovation is large,and the effect of technological innovation on the upgrading of industrial structure needs to be further adjusted.In the opening up,foreign trade is useful for rationalization of industrial structure,while foreign investment promotes the advance of industrial structure.In general,the financial development has a positive impact on the advance of industrial structure.The comparison between the models shows that Adaptive Lasso and Sparse Group Lasso coefficients are better.In addition,this research finds the possible expanding direction of the Sparse Group Lasso model.Based on the empirical results,combined with the problems in the research process and possible future situations,this paper puts forward relevant policy suggestions for the upgrading of industrial structure.