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Research on the Index System of New-type Industrialization of China LU Huali College of Economics and Management Henan Polytechnic University 454000 [email protected] , , Abstract A new-type development path of industrialization was brought forward in the 16th national congress of Communist Party of China. It is an inevitable choice for our country to realize the leaping development of economy. The researcher constructed an index system to reflect the current development condition of new-type industrialization. After giving a thorough analysis of the index system, the researcher employed to analyze the developmental levels of new-type industrialization of the eastern and middle regions. Based on the analyses of the factors and the regional development level of new-type industrialization, the researcher put forward some suggestions to promote the regional development of new-type industrialization in our country. Key words: industrialization, new-type industrialization, index system, factor analysis 1 Introduction Our country is at the stage of vigorous development of industrialization. However, the traditional extensive economic development pattern has caused some serious problems, such as: the backward industrial structure, the low level of technology and the seriously-destructed ecology, etc. And these problems have become a bottleneck which restricts our country’s economy development. Therefore, it is imperative to reconsider the traditional development path of industrialization. Under such situation, a new-type development path of industrialization which should be with high technology and high profit but with low resource consumption and little environmental pollution as well as with human resources being fully exerted was brought forward in the 16th national congress of Communist Party of China. The choice of the new-type industrialization was made after the Party summarized the former domestic and international experience and lessons and took the fundamental realities of our country into account so as to comply with the main stream of technological economy development in the world. The new-type industrialization is an inevitable choice for our country to realize a kind of harmonious development of all of the three: economy, society and environment as well as to realize the leaping development of economy. Many scholars have conducted research on the new-type industrialization, but the research results focused on the theory of macro-level. The thesis mainly analyzed our country’s development of new-type industrialization. then according to those industrialization, new-type industrialization theories and corresponding evaluating principles and criteria the researcher constructed an index system to reflect the current development condition of new-type industrialization from the following seven perspectives which included 26 subordinate indexes: the development degree of industrialization, the industrialization structure, the science and technology content of industrialization, the economic benefit of industrialization, the informational development condition, the coordination degree between industrialization development and resource environment and the sustained development of both industrialization and society. After giving a thorough analysis of the index system, the researcher employed to analyze the developmental levels of new-type industrialization of the eastern and middle regions and found some problems existed in the development of new-type industrialization in our country. Finally, the present study, based on the analyses of the factors and the regional development level of new-type industrialization of individual cities, put forward some general countermeasure and suggestions to promote the development of new-type industrialization in our country. 2 Research on the Index System of New-type Industrialization 963 In accordance with the new-type industrialization connotations and characteristics, reference to domestic and international evaluation criteria on the stage of industrialization, the researcher constructed an index system of new-type industrialization in three evaluation criteria, namely the development degree of industrialization, the industrialization structure, the quality of industrialization, the coordination and the sustained development of industrialization. 2.1 Evaluation indexes on industrialization process and structural change There are two perspectives which included 7 subordinate indexes: (ⅰ) evaluation indexes on industrialization process: per capita GDP, employment in agricultural industry accounted for the proportion of total employment of three industries, The proportion of non-agricultural population.(ⅱ) evaluation indexes on changes in the structure: added value of tertiary industry, the proportion of tertiary industry workers, urban and rural Engel Coefficient. ⅰ 2.2 Indexes reflect the quality of industrialization There are there perspectives which included 12 subordinate indexes: ( ) evaluation indexes on scientific and technological content: authorization of the patent application, research and development (R & D) funding in the proportion of GDP, the share of high-tech industries in the added value of Above Designated Size Industrial Enterprises, the output value of new products. ( ) evaluation indexes on economic benefit: rate between cost and profit, rate of total funds contribution. ( ) indexes reflecting the information development condition: the information industry investment accounted for the proportion of all the infrastructure investment and investment for renovation and transformation, the geographical distribution of the Internet, telephone subscribers at year-end, these indexes reflect the information infrastructure, the index of business volume of post service in the proportion of GDP being the indexes of information services, using the internet users as the indexes of information application, the added value of information industry in the proportion of GDP working as the indexes of information industries. ⅱ ⅲ 2.3 Indexes on industrialization coordination and sustainability It is divided into two aspects which include seven indexes, the coordination degree between industrialization development and resource environment and the sustained development of both industrialization and society: ( ) indexes reflecting the coordination and the sustained development between industrialization development and resource environment: discharge standard-meeting rate of industrial wastewaters, comprehensive utilization rate of industrial solid wastes, output value of products made from comprehensive utilization of waste gas, waste water and solid wastes, power consumption. ( ) industrial development potential and sustainability indicators: unemployment rate, personals engaged in scientific and technological in the number of scientists and engineers, overall labor productivity. ⅰ ⅱ Industrialization Process the Quality of and Structural Change Industrialization Table 1 The index system of new-type industrialization per capita GDP (yuan/person) the proportion of employment in agricultural industrialization process industry (%) the proportion of non-agricultural population (%) added value of tertiary industry (%) the proportion of tertiary industry workers % industrialization structure urban Engel Coefficient (%) rural Engel Coefficient (%) authorization of the patent application (item) R & D funding in the proportion of GDP (%) scientific and technological content the share of high-tech industries in the added (%) walue of industrial enterprises the output value of new products (%) 964 economic benefit information development condition Industrialization potential and Sustainability resources and environmental conditions human resources condition rate between cost and profit (%) rate of total funds contribution (%) the information industry investment accounted for the proportion of all the infrastructure investment and investment for renovation and transformation (%) the geographical distribution of the Internet (%) telephone subscribers at year-end (10000 subscribers) internet users (10000 subscribers) the added walue of information industry in the proportion of GDP (%) business volume of post service in the proportion of GDP (%) discharge standard-meeting rate of industrial wastewaters (%) comprehensive utilization rate of industrial solid wastes (%) output value of products made from comprehensive utilization of waste gas, waste water and solid wastes (million) power consumption (100 million kilowatt hours) unemployment rate (%) personals engaged in scientific and technological in the number of scientists and engineers (10,000) overall labor productivity (yuan/ person. year) Now established: X1 = per capita GDP (yuan / person), X2 = the proportion of employment in agricultural industry (%), X3 = the proportion of non-agricultural population (%), X4 = added walue of tertiary industry (%), X5 = the proportion of tertiary industry workers (%), X6 = urban Engel coefficient (%), X7 = rural Engel coefficient (%), X8 = authorization of the patent application (item), X9 = R & D funding in the proportion of GDP (%), X10 = the share of high-tech industries in the added value of industrial enterprises (%), X11 = the output value of new products (%), X12 = rate of total funds contribution (%), X13 = rate between cost and profit (%), X14 = the information industry investment accounted for the proportion of all the infrastructure investment and investment for renovation and transformation (%), X15 = the geographical distribution of the Internet(%), X16 = telephone subscribers at year-end (10,000 subscribers), X17 = internet users(10000 subscribers), X18 = business volume of post service in the proportion of GDP (% ), X19 = the added value of information industry in the proportion of GDP (%), X20 = discharge standard-meeting rate of industrial wastewaters (%), X21 = comprehensive utilization rate of industrial solid wastes (%), X22 = output value of products made from comprehensive utilization of waste gas, waste water and solid wastes (million yuan), X23 = power consumption (100 million kilowatt hours), X24 = unemployment rate (%), X25 = personals engaged in scientific and technological in the number of scientists and engineers(10,000), X26 = overall labor productivity (yuan/ person. year). 3 Positive Analysis on the Course of New-type Industrialization 965 According to the analysis of index system of new-type industrialization, the researcher applied the factor analysis to analyze the developmental levels of new-type industrialization, so as to explore the stage of China's new industrialization process and the existing problems. 3.1 Factor analysis 3.1.1 Standardization of the original data There are two kinds of approaches to deal with the inverse indexes in the original data in order to ensure the indexes of the evaluation system with the same trend. One kind as “the proportion of employment in agricultural industry”, “Engel Coefficient”, “unemployment rate”, using fi =1-Xi; another kind such as‘‘power consumption”, using this approach fi = max ( xi ) − X i . Then standardize max ( xi ) − min ( xi ) the original data, in order to ensure its objective and scientific. The standardized calculated as follows: ' X ij = X ij − X j Sj ,where: X ij ′ X X ij j for the standardization of data, for raw data, for the average of the j indexes, Sj for the standard deviation. 3.1.2 Factor analysis process For further comprehensive understanding regarding to China's middle and eastern region in the development of new-type industrialization, according to the established index system and collection of the target data, to make the factor analysis of all regions’ status of new-type industrialization. Applying statistical analysis software SPSS11.0, firstly, to make descriptive statistics and KMO and Bartlett's test respecting the variables participated in the factor analysis. Next use a wide range of principal component analysis to identify variable factors, communalities, total variance explained, component matrix and rotated component matrix. And then using component score coefficient matrix to calculate the component score, finally according to the component score and variance contribution rate to calculate the total score of the new-type industrialization development level of each province. As in Table 2: Table 2 the total score of the new-type industrialization development level of each province Area F Area F Beijing 1.5502 1 Hubei -0.0623 11 Shanghai 1.251 2 Jilin -0.1355 12 Tianjin 0.8741 3 Hebei -0.1468 13 Guangdong 0.7963 4 Hunan -0.2251 14 Jiangsu 0.4461 5 Anhui -0.2711 15 Heilongjiang 0.3313 6 Henan -0.2724 16 Zhejiang 0.238 7 Shanxi -0.296 17 Shandong 0.189 8 Hunan -0.2976 18 Fujian 0.1291 9 Jiangxi -0.4291 19 Liaoning 0.0936 10 3.2 Factor analysis results Form the total score table, in the first category are Beijing, Shanghai, Tianjin, Guangdong, ranking relatively higher; in the second category are Jiangsu, Heilongjiang, Zhejiang, Shandong, Fujian, Liaoning; by comparison after are Hubei, Jilin, Hebei, Hainan, Anhui, Henan, Shanxi, Hunan, Jiangxi. 966 The top 10 areas are basically in the eastern or coastal. The central region ranks comparatively back. This shows that in the aspect of the level of development of new-type industrialization, there is the relatively large gap between the east and the central. With the original data analysis, in Beijing, Shanghai, Tianjin, Guangdong the development of new-type industrialization is relatively high. The largest common point in these four areas is that the score in Compoent1 (F1) is higher than that of other regions. F1 score is far higher than the average level. F1 mainly reflects these indicators: the development degree of industrialization, the industrialization structure, the science and technology content of industrialization, the informational development condition. These indexes can be used as a simple judgment in the development of new-type industrialization standards. So overall, Beijing, Shanghai, Tianjin, Guangdong's new-type industrialization development level is higher than that of other parts. The original data also show that these four areas are in the country's leading position regarding new-type industrialization development. In Jiangsu, Heilongjiang, Zhejiang, Shandong, Fujian, Liaoning the level of development of new industrialization is in center position. These provinces’ main features: the score of the first factor is in the middle level, but still higher than the average level; they are one group with the second factor (F2) scored the highest. The second factor major represents these several aspects: the informational development condition, the coordination degree between industrialization development and resource environment and personals engaged in scientific and technological in the number of scientists and engineers. It is a new type of industrialization on the development potential and sustainability indexes. In Component2, Jiangsu, Heilongjiang, Zhejiang, Shandong, Fujian, Liaoning are stably together, mainly because these areas in this respect the proportion is relatively high. The remaining provinces in several factors behind are in relatively higher ranking, but because the variance contribution rate of them is relatively small compared to the previous two factors, these provinces rank in the third category. Through positive analysis, we find that the degree of development of new-type industrialization is consistent with the overall level of economic development; the level of development of new-type industrialization is affected by the overall level of economic development. Combination of historical data analysis, the results showed that our country’s regional comprehensive development level of new-type industrialization is higher in the east Overall, the development of eastern and coastal regions is best and the rest regions which lie in the middle of China is at the low lever. , 4 Policy recommendations 4.1 In the policy system It is necessary to pay attention to the role of market mechanisms, establishing a fair, just and open competition market environment, The Government should fully discharge its responsibilities, To improve the laws and regulations in favor of the development of new-type industrialization, Maintaining a fair and reasonable market environment, to promote and facilitate the rapid and healthy development of new-type industrialization. 4.2 In science-technology and education On the one hand, develop energetically developed high and new-tech industries, we need to utilize new and high technologies and advanced applied technologies to transform and upgrade traditional industries, to optimize the industrial structure and raise the products' competitiveness in international market. Achieve a leap in the development of the productive forces. On the other hand, develop education and science, to improve the quality of human resources, to provide human resources support to the new-type industrialization. 4.3 In information industry We should energetically promote IT application and use IT to propel and accelerate industrialization, and promote the sound development of the industrialization. Our country must give stronger support to the development of the information industry, and use IT to propel and accelerate industrialization, 967 transform the defense-related science and technology into actual productivity 4.4 In recycling economy To developing the recycling economy and promote sustained development of economy. Recycling economy follows 3R principles: reducing, reusing, and reproducing, which is consistent with development models of new-type industrialization. The new-type industrialization also stresses low resource consumption, and little environmental pollution. From the raw data we can easily find, in China's eastern and coastal areas energy consumption is compared high, therefore, we should vigorously develop recycling economy, and strive to achieve a coordinated development of population, economy, society, resources and environment. References [1]QuGeping. Probe Sustainable New Industrialization Road. Environmental Protection,1(2003),p3~5(in Chinese) [2] Xie Delu, Li Qiong. Trial Analysis on New Industrialization Index System and Evaluation Standard. Reform, 4(2004),p30~38(in Chinese) [3]Wang Xiaoyun,Wu Jining. Study on New Comprehensive Evaluation Index System of Industrialization. The Theory and Practice of Finance and Economics,6(2006),P122~124(in Chinese) [4]Li Bin,Chen Jun. Research on the Survey of New-typed Industrialized in China. Special Zone Economy,8(2007),p276~278(in Chinese) 968