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The upgrading of industrial structure hindrances to the analysis based on the angle of the open approach

Author: YangXiaoLin From: www.yourpaper.net Posted: 2010-06-05 17:02:35 Read:
Paper Keywords: excessive competition welfare transferring industrial upgrading
Abstract: In this paper, the problems in the process of opening to the outside world from the point of view of the distribution of benefits theoretical discussion that a conflict of interest and game from the the dry between local governments and between local and national, leading to the opening-up process the over-exploitation, vicious competition, which led to enterprise innovation and development capacity is low, industrial upgrading blocked.
Opening up to the outside world as half of the "reform and opening" Banding noun, it can be said that the important part of the economic policies of the RF1 [1I. The meaning of opening up to the outside world are many, mainly from the economy can be summarized in two points, that is, the introduction of foreign investment and exports.
Particular theory from the simple introduction of foreign investment, exports and later exports and investment (foreign investment is an important component) side by side with the consumer as the troika pulling the economy given high priority, we have been to the opening up to the high expectations, the actual on the establishment of foreign economic relations also played an important role indeed towel economic development gills. The towel ring increasingly exposed to internal and external economic imbalances, however, we had to open the way for reflection. In particular, the evolution of the sub-prime crisis hunger since the economic crisis, China has been the economic impact as well as the responsibility of the accused more so we note that the process of opening up the towel loss of interest and disadvantage in the international division of labor towel. Upgrade the industrial structure has become a problem we need to explore, however, before we have to figure out the reasons for upgrading the industrial structure in China blocked, in order to explore the root of the real solution to the difficulties we faced before. Factors affecting the industrial upgrading are multi-faceted, this article only opening up to explore. China's economic development the tendon really need what open? May move up or put the extent of long-term and purely theoretical terms, the higher the better, but open the actual conditions for such a special hair tendon countries, the problem may The need for more specific analysis.
The particularity of China is first expressed in terms of trade, the most significant is that China is too big, to what extent large, economists say large in the international market, you buy ff 'what prices you sell something and decline in value of the degree of . So that enterprises in international trade towel it is difficult to help a practical interest, this is very bad for our economy the main micro enterprises. The terms of trade limits the profitability of enterprises, and also limits the development and innovation capacity. I open towel through reflection towels States ignored, and economic factors that adversely affect, in order to help more good results in international economic exchanges towel.
The two most important aspects of the external economic openness is the foreign trade and attract foreign investment. In the situation of China's domestic consumption, many people see it as an effective means to stimulate the economy, and relish. But we should reflect on why the domestic market can not be established? Relying on foreign trade and investment brought about by the economic growth in the significance of the development is not as numbers themselves have shown significant contrary, the process towel local governments and enterprises unreasonable behavior, leading to the degree of foreign markets and corporate welfare.
1 Foreign Trade
The export is considered to be one of the important means of stimulating the economy, according to the comparative advantage of the development of industry has been playing a leading role in theory. But there are serious problems towel country's exports to achieve economies of scale and employment Zhen offer. China's foreign exports are mainly labor-intensive products, membership argue that the proportion of capital-intensive industrial manufacturing soon increase the already high proportion. But in fact, this is largely the result of the division of labor within the international product. Most of the enterprises are classified in this capital-intensive production towel, still do assembly areas with low technical content, can be said is still a labor-intensive foreign trade. Such trade for employment is a great Zhen offer, but is still far from this goal with our economic development. Japan and the four Asian dragons towel country's export-oriented economic construction as role models and successful example. But after three decades of reform and opening up the results obtained in addition to the digital high-speed economic growth in other areas has yet to be improved. In addition to the total economy, we help get the results, our business is almost brand in the world. Most still rely on cost-advantages of low-profit enterprises, this business model! J! "J can not be sustained: J! LJ labor advantage is one other embarrassing things, which shows residents' income is very low, that is, said residents benefit from economic growth towel Rotary not more than. The most important thing is the low-margin limit business growth and innovative ability, we hope for enterprises in the production process continue to accumulate funds to raise the aspirations of the steps in this case seems to have become distant. I believe that first and foremost because China is a populous country, labor supply tends to be almost unlimited, until today we still can not get out from the trap of cheap labor comparative advantage. And there is no doubt act in accordance with the laws of the market, most of the companies do not want to give up the steady income from labor cheap, "risky" investment in research and innovation. This market mechanism under the international division of labor and the distribution of benefits, at least for the Chinese is very bad, this time we need the support and guidance of the Government to promote the company's R & D investment and innovation ability. Unfortunately, the local governments for their own performance considerations tend to choose short-term interests that blind expansion of investment, the result is all over the redundant construction, industrial structure similar to overcapacity and cut-throat competition, international competitiveness of enterprises is not retrograde. Some economists have pointed out that some of China's export enterprises to do is the surface of the profitable business of actually losing money, its profits net of tariff, tax and other concessions granted by the government may become negative, such enterprises so what is innovation. The basis of their survival is not the market, the local governments under the control of the irrational view of achievements in order to ensure economic growth rate have been deliberate, this growth is clearly contrary to our original intention.
2 Foreign Direct Investment
Foreign direct investment in China's economic role in promoting a lot of people have been studied, we re-examine the costs incurred in this process is necessary. "Considerable evidence that China obtained directly open income is relatively lower than the multinational companies, and even paid a huge social cost. Leading to the fundamental reason for this result is that China's participation in economic globalization factors of production is cheap labor, and developed countries, multinational companies have been relying on advanced technology, innovative products. unlimited supply of cheap labor, as well as the tremendous pressure to solve the employment and strong demand growth, the elements of cooperation (international division of labor) in the joint venture negotiations and price decision weak position. "(Wen Zhang) investment now many local governments as an important aspect of the effort, to produce a blind mind, a lot of places to give foreign offer is very unreasonable, which is China's private enterprises an injustice and oppression. Actually should be protected is precisely the growing Chinese private enterprises, due to the competition of the local government to attract foreign investors, however, makes a lot of irrational policies. The most researchers regression results (such as Sun Jun, 2002) 20 years of China's reform and opening up, preferential policies have been an important driving force to attract FDI, and the effects of the policy does not diminish over time. Therefore, the region launched a competition to attract foreign investment. To be able to attract foreign direct investment, through the establishment of development zones, tax relief, and to provide free land use, low-cost transfer of the rights and interests of state-owned assets means the country's foreign investment preferential policies to the limit. These policies to stimulate the necessary and adversely affected to be empirical. Itauf'ler and Wooton (1999), the preferential policies of competitive foreign countries do not have any positive impact on the multinational Investment for pure waste of resources. This point of view I hold a positive attitude. Foreign investment is in accordance with the laws of the market, China's labor supply to meet this condition, foreign investment into the person is a natural thing. The Government for the eagerly the spicy-term interests or between local governments disorderly competition, making us free of charge to sell a large number of the benefits gained. And in this process, the Government does not pay full attention to the protection of private enterprises in the market by foreign monopoly on high-end products, the domestic brands has never been able to grow.
From the above analysis we can see, the blind expansion of exports and the introduction of foreign capital, which resulted in two adverse consequences, in addition to the short-term economic growth seems to be favorable. First, many enterprises operating profit due to excessive competition and development capacity is limited. Second, domestic residents disproportionate to the income raise the level of our economic growth, insufficient domestic demand. This is a vicious cycle, insufficient domestic demand will increase dependence on exports, export-dependent step but also lead to more serious vicious competition, further deterioration of business survival conditions, hindering industrial upgrading. The aftermath of the crisis, we have already begun to emphasize innovation, upgrading of industrial structure. I believe that to do the work first we need the courage to give up the surface of the article, the courage to give up some of the short-term interests. Continue to increase investment in infrastructure to ensure that short-term economic growth is probably only lead to more serious production overcapacity and cut-throat competition, which will lead to further deterioration of the environment of the Chinese enterprises in international competition. After China's reform and opening up has to get rid of the shackles of economic development in many systems, in accordance with the development of comparative advantage should be the behavior of the market, the work of the government should be changed to the development sector has a comparative advantage potential, rather than one-sided emphasis on data, resulting in a lot of growth but not development or growth now pay later.
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