Empirical Research On Adjustment Of Industrial Structure On Regional Economic Growth

Adjustment of industrial structure in regional economic development of china is an important issue. China's industrial restructuring with a strong political significance. It means that the government in industrial restructuring has played a leading role. In all regions, industrial restructuring is the important method of achieving the conversion of economic growth pattern, and the "Jumping" growth for the local governments.According to the theoretical research and international industry experience, government-led industrial restructuring can promote economic growth, but it contains a huge market risk and moral hazard. In recent years, the research of the efficiency of China's industrial restructuring has become a hot spot. But, the research for the regional matter is still less, secondly, the research methods and data processing exist deficiency, thirdly, the conclusions of the study have great differences.This paper references endogenous growth theory, through the research of the total factor productivity, study the affect of the adjustment of industrial structure to the regional economic growth. According to the characteristics of the regional industrial development, this builds industry sub-sector regional stochastic frontier production function. Through the use of panel data model that considers time-varying random effects to estimate the parameters of the production function. Using the result of parameter estimates, total factor productivity growth was decomposed, and gained the industrial structure effect from the decomposition. The results show that the effect of regional industrial structure adjustment of China's to the regional economic growth was not significant.As a result, the author suggested that local government should change the government-led industrial restructuring approach. Especially, the lower levels of regional government should avoid direct intervention in regional industrial development. In the aspects of economic development planning and policy, they should bring up market forces, curb monopolies, promote the fair competition in the market, strengthen the construction for education and technology, infrastructure, human capital, social security, resources and environment, legal, and create a good environment for industrial development. At last, China becomes a country that market-regulated with government regulation subsidiary, and the industrial structure reasonable promotion and self-improvement.