Download Optimization of Regional Industry Structure Using Resources Flow

Optimization of Regional Industry Structure Using Resources Flow
TAO Jiange
School of Economics and Management,
Zhongyuan University of technology, Zhengzhou, P.R.China, 450006
[email protected]
：
Abstract At present, the basic approach and tasks for the work of the regional government are: to speed
up adjustment of the economic structure and change of the pattern of economic growth and to strengthen
resource conservation and environmental protection. Many researches have been made in the field of
Optimization of Regional Industry Structure, but most of them focus on the economic structure.
Nature resources flow is an emerging concept in resources science. Based on regional industry structure
adjustment a flow mode1 of nature resources was studied which was suitable and competitive
advantage for regional development. Input-Output Analysis IOA of nature resources was studied in
order to show complex cooperation process of nature resources among industry system. Some proper
strategies are provided for economic policy of industry adjustment. Resources flow research can
promote the development of regional economy and the improvement of industrial structure, the
formation and development of regional sustained competitiveness is very important to resources flow
and improvement of industrial structure.
Key works optimization; industry structure, resources flow
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1 Introduction
China began implementation of its Eleventh Five-Year Plan, making major achievements in economic
and social development. However, we are clearly aware that there are still many difficulties and
challenges in China's economic and social development and some shortcomings and inadequacies in the
work of the government. First, there are still serious structural problems in the economy. There is a lack
of proper balance among primary, secondary and tertiary industry, urban and rural development and
development among different regions are not balanced, and the pattern of investment does not reflect
consumer demand. Agriculture, the base of the economy, remains weak, and it is now more difficult than
ever to steadily increase grain production and keep rural incomes growing. The overall scale of
investment in fixed assets is still too large, the problem of excess liquidity in the banking system is
serious, and the factors causing overheated investment and excess credit still remain. The trade surplus
has become large, and the imbalance in international payments has worsened. Second, the pattern of
economic growth is inefficient. This can be seen most clearly in excessive energy consumption and
serious environmental pollution. The targets for saving energy and reducing pollutant emissions were set
forth in the Eleventh Five-Year Plan. This is of vital importance in efforts to promote the change in the
pattern of economic growth and increase energy conservation and environmental protection. All local
governments and government offices did a great deal of work and made much headway in these areas
over the past year. However, we fell short of the targets set at the beginning of last year for cutting
energy consumption per unit of GDP by about 4% and total discharge of major pollutants by 2%. The
main reasons were: Industrial restructuring proceeded slowly, while growth in heavy industry, especially
in sectors that are high in energy consumption or are highly polluting, was still overheated. Many
backward production facilities that should have been closed down are still in operation. Finally, some
local governments and enterprises failed to strictly comply with laws, regulations and standards for
energy saving and environmental protection, and it will take time for relevant policies and measures to
produce the desired results. Meeting these two mandatory targets in the Eleventh Five-Year Plan is very
important.
The development of industry economy cans not get away from nature resources to prop up. It is big,
researching on flow of nature resource scheduling. In the new millennium, we are facing a whole series
of global problems that are harming the biosphere and human life in alarming ways that may soon
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become irreversible. Today, many non-renewable and renewable resources are exhausted by the
irrational use of resources. The great challenge of our time is to build and nurture sustainable
development society in which we can satisfy our needs and aspirations, rational use of nature resources
without diminishing the chances of future generations.
With the rapid economic growth during the last two decades, China has become one of the largest
economies in the world. However, China is experiencing severe natural resource constraints,
environmental degradation and pollution. Particularly, blindly pursuing rapid economic growth will lead
to resource depletion, and will impede the nation’s social and economic growth, regional development,
and the progress of modernization. The extensive mode of economic growth and predatory use of
resources make Chinese energy, fresh water, land, mineral etc resources shortage of antinomy further
highlight. At the same time, the problem of produces and consumes absurdity is very outstanding,
escape from actual, be greedy for to pursue extravagant, spend lavishly the wasted phenomenon to
return a great deal of existence. In response to these challenges, the Chinese government has adopted a
mission of a harmonious society with a view of using practical administrative tools for achieving
harmonious, sustainable and scientific-based development. It is right the time for China to research flow
of nature resources to provide basic guidance for harmonious and sustainable development strategies
and management. With the development of resources science, resources system has been evolved into its
important and key research objective. The whole process of resources exploiting and using has been
being studied by various scholars. Nowadays, researches on resources flow are more loosely scattered
and have not been developed into a systematic and scientific theory system. Resources shortage
resulting from resources flow process, which is unsuitable resources exploitation and using, have
promoted the development of resources science. Many researches have been made in the field of
[1]
resources science, but most of them focus on the qualitative of resources.
Based on regional industry structure adjustment a flow mode1 of nature resources was studied
which was suitable and competitive advantage for regional development. Resources flow research can
promote the development of regional economy and the improvement of industrial structure, the
formation and development of regional sustained competitiveness is very important to resources flow
and improvement of industrial structure.
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2 Analysis of industry structure and nature resources
2.1 The characteristics of Nature resources
Natural resources have three functions to the economy: 1) resource functions: providing basic
materials to the economic development; 2) sink functions: absorbing emitted wastes from the economic
production, and; 3) ecological service functions: providing landscapes and the habitat for all living
beings including mankind. Simply, the characteristics of nature resources contain that: 1) scattered, 2)
regional, 3) impacted by technology, 4) impacted by economic, 5) unsymmetrical of information.
The nature resources product, which is related to the economy, not only includes energy, fresh
water, mineral, etc, but also includes landing, forest, etc. it usually shows many varieties, many
standards, difficult placing and displaying and relying on regions. Shen Lei (Ph.d, Professor, Institute of
Geographic Sciences and Nature Resources Research of Chinese Academy of Sciences) argue that the
connotation of resources flow includes at least three aspects: its complex, dynamic and space-time,
which consist of system, substance, energy, value, labor and others. The research purpose of resources
flow is to understand how and what resources are used in socioeconomic system and to identify their
interior mechanism during the resources flow process so that it can provide more scientific and efficient
guidance for resources utilization and sustainable management. The main areas of different kinds of
researches on resources flow can be categorized as follows: trans-sectional and industrial researches;
element, molecule, substance and material flow researches; theory and application researches. Methods
applicable in resources flow mainly include: input-output analysis, material flow analysis, industrial
metabolism, life cycle assessment and so on. These methods are derived from different disciplines with
different points of view, while each of them has its own advantages and shortcomings. In the future, the
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following aspects should be paid more attention: first, studies on resources flow of individual sector,
especially the resources-intensive consumed sectors and their potentially affecting ones; second,
regional resources flow studies which will help the decision-makers find some resources flow problems
in time; third, studies on strategic resources flow, such as coal, petroleum, iron ores, water and others,
which will be more important for sustainable resource development; fourth, some related social issues
from resources flow, such as the relationship between household consuming structure and resources
flow the influence of employment structure from resources flow. Moreover, the following researches
areas should be thought more over on the advantages of cross-disciplines and their combination of
theory and practice. Apparently, for building the friendly environmental and saving resources society in
China, the resources flow research will be a significant direction either in theoretical or practical context
[2]
.
，
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2.2 resource—economy system
In a certain technological and Economic conditions, resources can create benefits for mankind
which include the material, energy and information etc. Resources consist of natural and artificial
resources. Natural resources are the basic means of production and life. It is important material
foundation to support survival and development of human. If the resources meet the needs of
contemporary people and future generations, it will have the sustainable development conditions;
otherwise it should need to find alternative resources. The relation of resources and economy as
[3]
follows .
3 Optimization model analysis of resources and industry structure
3.1 Input-Output analysis of resources in industry
Input-output model (input-output methods) reflects the interdependent relations between the input
and output volume of the economic system (such as departments, industries, products), which is the
mathematical analysis methods used for economic analysis and policy simulation, economic forecasts,
plans development and economic control[4]. The principles of the relationship between resources and
economy may be expressed as follows formula:
Q = F ( R) = Q1 + Q2 + L + Qm
Q = f1 (r1 , r2 ,L , rn ) + f 2 (r1 , r2 ,L , rn ) + L + f m (r1 , r2 ,L , rn )
Constraints: f m > f m min
rn ≤ rn max
In which: Q --the general production
rn --variables of resources
f m --variables of industry
f m min --The production boundary conditions for m industry
rn max --The production boundary conditions for n resources
qij
aij = (i = 1, 2,L , n; j = 1, 2,L , m)
qj
If
aij
was known as coefficient of the direct consumption resources.
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If
，
 a11 K a1n 


A= M O M 
a

 m1 L amn 
In model A (direct consumption coefficient matrix) reflects the technical structure of the production
process.
In resources-economics system, Resource depletion (or natural capital depreciation) value is the input
of natural resources used and consumed in the economic process, namely the economic value of
deductions of natural resources stocks, emphasizing particularly quantitative uses of natural resources.
Resources depletion valuation requires estimates of the economic rent: namely the difference between
output (the market price of natural assets produced for consumption (revenues), the costs of production)
and input (a fair return on resources invested (i.e. the opportunity costs of inputs)).
3.2 Optimization Model of industry structure
In resources-economic system, the resource input-output of regional (industries) is analysis resources
flow in different regional (industries) to achieve the ultimate output value. Natural resource accounts
(NRA) can provide an effective tool for linking information about resources and economy. This paper
[5]
provides an analysis of how NRA can be used for policy analysis based on flow of nature resources .
Flow of nature Resources in different region (industry):
If
riy
rix
<
Qx Qy
y
The production of nature resources i is smaller in region (industry) x than in region (industry) .
The flow of nature resources i flow from region (industry) x to region (industry) y .
3.3 Analysis industry competition and sustainable development
Flow model of nature Resources scheduling is a powerful tool that can be used for a wide range of
industry economic analysis, which including:
identifying and measuring the composition and level of industry economic activity
understanding the inter-relationships between industries
studying the effects of change in supply and demand throughout the industry economy
analysis of the nature resource flow between industries and regions
Understanding the volume and significance of material and waste flows by industry, when the
model is adapted for this type of use, and providing the basis for the calculation and
improvement of GDP.
Flow model of Nature resource scheduling, with adaptation, also provide the basis for wider reaching
analysis, including measuring the economic contribution of composite industry groups.
4 A case of structural Adjustment: Experiences from Jiangyin City
4.1 Industrial relocation and resource reallocation
Theoretically, industrial relocation and resources reallocation include: i) centralizing the scattered
enterprises to industrial zones; ii) shifting human resources, materials, and investment to enterprises
with good products, good market shares, good profits and good management; iii) shifting individual
pollution abatement to centralized treatment. Accordingly, Jiangyin Municipal Government devoted to
the construction of industrial zones, the development of small towns, the establishment of large-scale
industrial groups and the construction of centralized pollution abatement facilities.
4.2 Development towards high-tech, high value-added product and high profits
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Jiangying City developed the “three-high” guideline for the development of industrial enterprises, i.e.
high-tech, high value-added products and high profits. In recent years, investment in the introduction of
advanced technology, process and equipment to upgrade Jiangyin’s industrial sector amounted to 3
billion RMB. Consequently, 75 percent of current industrial technologies in Jiangyin reached up to the
international levels of the 1980s and 1990s around. In addition, the municipal government encouraged
merging small enterprises into large enterprises with high tech and advanced equipment and promoted
cleaner production.
5 Conclusions
Resources can promote the development of regional economy and the improvement of industrial
structure-and it can be advantageous to the formation. All of these factors can promote the formation
and improvement of the regional sustained competitiveness At the same time, the formation and
development of regional sustained competitiveness is very important to resources flow and improvement
of industrial structure For example, by relaxing domestic natural resource constraints it has been argued
that international trade allows any particular country to deplete natural assets abroad by importing its
natural resource requirements, While, the onus is on resource extracting countries to make provision for
the loss of domestic natural assets whether for export or not, some importing countries have expressed
interest in measuring their derived demand for the depletion of resources [6].
We should accelerate efforts to upgrade the industrial structure and make independent innovations.
We will continue to follow a new path of industrialization, concentrating on upgrading the industrial
structure. In the last years, the pattern of economic growth is inefficient. This can be seen most clearly in
excessive energy consumption and serious environmental pollution. with exaltation using of nature
resources flow efficiency for core, the development of regional should economize on nature resources,
speed structure adjustment, push forward technique progress, strengthen the legal system construction,
perfect policy measure, enhance the economy to realize, build up as soon as possible sound promote
economize a system of social construction and mechanisms, become the growth method and the
consumption modes of economize the types gradually, provide for the source to make use of efficiently
and make use of circularly.
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References
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Consumption and National Resources safety Change [J]. China Population Resources and
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[2] SHEN Lei, LIU Xiao-jie. Discussion on Theories and Methods of Resources Flow[J].RESOURCES
SCIENCE, 2006(5): 9 15(in Chinese)
[3] Gylfason, Thorvaldur. Natural resources, education, and economic development [J].European
Economic Review, 2001, 45(6):847~859.
[4] ZHOU Peng. A contrastive study of economic development between the china’s resource-oriented
and processing-oriented areas [J].Economic Geography, 2005,25(3): 289~293. (in Chinese)
[5] Jeffrey D. Sachs. Globalization and patterns of economic development [J].Review of World
Economics, 2000,136(4):360~365.
[6] LI Qun. Study on Regional Sustained Competitiveness Based on Resources Fluxion [J]. JOURNAL
OF SHANDONG UNIVERSITY(Philosophy and Social Sciences), 2005 5 76 83 (in Chinese)
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