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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 , ( ) : 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 93 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. , 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 94 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] . , , 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. 95 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 96 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. . . References [1] XIE Gao-di,CHENG Sheng-kui, YU Gui-rui, GAO Wang-shen. Trend of China’s Natural Resources Consumption and National Resources safety Change [J]. China Population Resources and Environment, 2002,13(3):22 26. (in Chinese) [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) ~ · ~ ( ): ~ 97