The Research On The Industrial Development Cost Based On Elements Of The Supply Conditions Change

Since the early 1990s, by using low-cost advantage to attract foreign investment, china have developed the manufacturing industry, increased exports and stimulated domestic economic development. In the mean time, Chinese goods spread all over the world, making china win the title of "World factory ". In the past few years, domestic and international economic scholars concluded that the competitiveness of China's manufacturing industry relies mainly on low-cost. While recently, due to the inherent drawbacks of extensive economic growth mode, the supply of raw materials, land, energy, labor and other factors changes a lot. Under the circumstance of the extensive mode of economic growth, the mode of manufacturing industry development focus on using low-cost advantages attracting the transfer of a large number of industries in developed countries, and developing labor-intensive, capital-intensive high-consumption industries, which has been at the low-end of "smile curve", has low level of technology, but has huge demand of factor of production. The impact of elements supply caused by extensive mode of economic growth, will directly affect the progress of development of manufacturing industries, and increase the cost of industrial development. In the long run, it will threaten China as the world's plant, making china industry development faced with the hollowing out crisis.In this context, this paper starts from the mode of economic growth, studying the variance of supply elements conditions caused by China's current extensive economic growth. On this basis, combining manufacturing industry development mode, this paper explore fluctuation of the manufacturing industry cost caused by the variance of the supply elements conditions, On the basis of theoretical discuss, combining the current status of manufacturing industry in China's Yangtze River Delta Region, using Solow model, this paper establish the element model, exploring the specific elements that effect the costs of industry development, the degree of influence. Accordingly, this paper provides strategic suggestion that relevant department and businessman should promote industrial upgrading, accelerate business growth and industrial development adapting to the objective trend of industrial development and industrial transference. This paper mainly study from the following three aspects:Firstly, this paper reviews the relevant theories about the element supply and the costs of industrial development. With the help of economic growth theory and related industrial development mode theories, this paper discussed the logical relationship between the costs of industrial development and the elements of the supply conditions from both macro levels and micro levels.Secondly, considering the economic growth theory, the status of China's economic development and sustainable development requirements, this paper establishes the research framework of industry development costs in the perspective of elements supply condition change. Focusing on the current status of manufacturing industry development in Yangtze River Delta region, this paper establishes the element model about the cost of industry development, and conducts quantitative research.Finally, combining the results analyzed above and the status of the economy in Yangtze River Delta Region which has two provinces and one city, this paper puts forward how to deal with the cost of upgrading the current industry, and try to find out countermeasures to promote china sustainable economic development.