Research On Supply-side Structural Reform Based On The Theory Of Labour Division

China started to fluctuate from a high point of GDP growth rate of 12.2% in the first quarter of 2010.It has lasted for 9 years,and its economic operation has taken on different forms and characteristics.The contradiction between the mismatch between supply and demand has become increasingly prominent.The specific performance is as follows: First,the excess supply of low-end industry capacity,second,the insufficient supply of high-end industry capacity,and third,the reform of institutional mechanisms is lagging behind.To cope with this change,while facing the traditional general sense of demand management with a modest improvement scope,it is urgent to promote supply-side structural reforms.Through supply-side structural reforms,vigorously trigger the vitality of microeconomic entities and correct supply and demand.Structural mismatch and distorted factor allocation,reducing the supply of low-end industrial products,expanding the supply of mid-to high-end industrial products,promoting the flow of factors and optimizing the allocation,and achieving a higher level of supply and demand balance.In addition,General Secretary Xi Jinping pointed out: “The main contradictions in our society have been transformed into the contradictions between the people's growing needs for a better life and imbalanced and inadequate development.” This conclusion confers new and higher requirements and significance on advancing supply-side structural reforms.Meeting the people's growing needs for a better life,solving the problem of imbalanced and inadequate development,and promoting high-quality economic development require deepening supply-side structural reforms.Based on the background of the nationwide supply-side structural reform,this paper takes the western region as the starting point,combines the current situation of the supply-side structural reform in the western region,and the evolution of the industrial structure.The four basic issues of structural reform "how much to produce,what to produce,how to produce,and for whom",firstly clarified the division of labor and supply from four aspects: labor specialization,professional diversification,circuitous production,and economic organization.The internal relationship of structural reform.Then,based on the relevant analysis of the savings-investment theory,an analysis framework for supply-side structural reform based on the theory of division of labor potential was constructed,and it was pointed out that the realization of effective demand and the improvement of productivity must depend on the expansion of division of labor potential,that is,whether the investment It is conducive to the specialization,diversification,organization,and circuitization of the division of labor,so that labor,capital,technology,and systems can effectively increase effective supply.In addition,the government can influence labor specialization,professional diversification,circuitous production,and economic organization from the supply side of production order and transaction order.Since the existing research has not revealed the formal mathematical model of the evolution of the supply-side structural reform and its economic effects,this paper further builds a theoretical model of the evolution of the supply-side structural reform,and conducts ultra-marginal analysis and static analysis of general equilibrium comparison to discuss The evolution mechanism of supply-side structural reform and its effect on economic growth.Finally,this article will use panel data from prefecture-level cities in the western region for many years for empirical testing.For this reason,this article is full of theoretical and practical significance.The research finds that:(1)Under the constraints of the minimum survival conditions and the loss coefficient,the optimal level of self-sufficiency will not exceed the level of food and clothing.Therefore,it is necessary and necessary to go beyond food and clothing,move towards common prosperity and deepen the division of labor.(2)Based on the four basic issues of supply-side structural reforms: "how much to produce,what to produce,how to produce,and for whom",it can be done from four aspects: labor specialization,professional diversification,circuitous production,and economic organization.Construct an analysis framework for supply-side structural reform.(3)The improvement of productivity must depend on investment that expands the potential for division of labor,that is,whether the investment is conducive to the specialization,diversification,organization,and detour of the division of labor,so that labor,capital,technology,and systems can effectively increase effective supply.And improvements in any of the above aspects will promote economic growth,and the government can carry out supply-side structural reforms by providing good production order services and transaction order services.(4)When the degree of specialization in the production of food,clothing and order services and the efficiency of market transactions are sufficiently high,the structure of self-sufficiency containing only production order services will evolve to a complete structure of division of labor including both production order services and transaction order services The level of specialization and diversification of the economy will increase at the same time,and the utility of consumers-producers will be improved.Eventually,Pareto improvements based on labor specialization and professional diversification will be achieved.(5)When thedegree of specialization in the production of capital goods and the efficiency of market transactions are sufficiently high,the economy will evolve to a complete division of labor structure that includes both production order services and transaction order services,and endogenous roundabout production,specialized in providing capital goods departments will emerge from the division of labor,and the level of detourization and economic organization of the economy will increase at the same time,and thus the utility of the consumer-producer will be improved,and eventually Pareto improvement based on detour and organization will be realized.(6)Specialization and economic growth in the western region present an inverted U-shaped relationship,that is,an increase in the level of specialization before reaching a threshold will help promote economic growth.When the level of specialization exceeds the threshold,it will promote economic growth.In addition,in terms of city size,there is an inverted U-shaped relationship between the specialization and economic growth of medium and large cities in the western region.The specialization level of small cities has a significant role in promoting economic growth.(7)There is a U-shaped relationship between diversification and economic growth,that is,the development and diversification of western cities will initially have a negative impact on economic growth,and it will only have a positive impact on economic growth when it reaches a certain level.In addition,in terms of subregions,there is a U-shaped relationship between diversification and economic growth in the Northwest,and there is no non-linear relationship between diversification and economic growth in the Southwest.In terms of city size,there is a diversification and economic growth of large cities in the West.U-shaped relationship,the diversification level of small and medium-sized cities has no significant non-linear relationship with economic growth.(8)Fixed asset investment in the western region has a significant promotion effect on economic growth.In addition,from a regional perspective,whether in the southwest or northwest,or in cities of different sizes,fixed asset investment has a significant effect on promoting economic growth.But the promotion effect decreases with the increase of regional economic development.(9)The increase of the level of marketization in the western region has a significant role in promoting economic growth.In addition,from a regional perspective,whether it is the southwest,northwest,or cities of different sizes,the overall level of marketization has a role in promoting economic growth very significant.The research conclusions of this paper have some policy implications,and provide theoretical and empirical evidence for related government departments to formulate policies related to supply-side structural reforms.First,the structuralreform of the supply side in the western region must start with increasing the potential for division of labor.To increase the potential for division of labor,it must start with four aspects: labor specialization,professional diversification,circuitous production,and economic organization.Second,the structural reform of the supply side of the western region should focus on reducing transaction costs.The government can continue to reduce transaction costs by providing good production order services and transaction order services.Although China is at the forefront of the world in economic development,there is still much room for transaction costs to fall.This requires that on the one hand,we strengthen the infrastructure of interconnection and reduce the cost of exogenous transactions;on the other hand,we need to deepen reforms and reduce the system.Endogenous transaction costs.Finally,the structural reform of the supply side in the western region must focus on the policy of the city.The choice of urban supply-side structural reform policies(that is,labor specialization,professional diversification,circuitous production,and economic organization)should be consistent with the city's real economic needs.