Analysis Of Bonus Effect On Regional Economic Structure Restructuring In Guangdong Province

Since the enforcement of the reform and opening up policy, China has witnessed rapid and stable economic growth, which is in the average more than 9.8 per cent in the GDP growth, and which should thank to the actions of delivering resource configuration rights to the market, optimizing the industrial structure constantly, and transmitting production factors across regions and industries. Based on releasing the restrictions in transmitting production factors, production factors flow from low productivity department to higher productivity department, which promote social productivity rising and economic growth. Production factors flowing are one of the important influential factors for productivity growth, which is named the structural bonus hypothesis. In the transition economies with low efficiency allocation factor market and a great gap of production frontier, structure bonus often comes up during the course of industrial structure adjustment, industrial upgrading and industrial transferring.As the forefront place of reform and opening up, Guangdong province also makes its economic growth in the forefront of the whole nation, and gets glorious achievement. However, land insufficient, resource scarcity, population burden and environment overdrawing have turned out to be very serious problems in this region, which consequently proved the old model with overusing of natural resources cannot be continued to execute. The basic conditions for Guangdong economy to maintain steady and rapid growth should be the way of low energy consumption, sustainability industry development. According to the comparative advantages with Labor and land costs raised, the economy should take industrial structure to technology-intensive and innovative development. In May 2008, Guangdong actively responded to the international financial crisis, proposed the ?double transfer'industrial development strategy, optimizing of regional industry layout and improving labor quality, enhancing the competitiveness of the industry of the pearl river delta area, driving the eastern, western and north mountainous accelerating development, in order to promote mode of economic development and ensure sound and rapid economic growth. This is a strategic measure of adjusting production factors, realizing industry upgrading with industries transferring among the regions, giving play to factor allocative efficiency for sustainable development of Guangdong.Industrial upgrading with adjustment and restructuring resources among regions lay industrial foundation for sustainable growth and high quality development. In this paper, we analyze the structure bonus in the industry, factor transferring, and discuss the intrinsic mechanism of regional economic growth in Guangdong province. The paper analyzes the potential conditions of the structure bonus in Guangdongprovince through the economic data in this area. Furthermore, the paper uses the stochastic frontier production function to calculate the all factor productivity with the panel data of 21 cities in Guangdong province. The paper seeks for the condition of structural adjustment to promote productivity growth through decomposition of pure factor productivity. As a result, we found that the structure bonus contribute to the growth of factor productivity at a rate of 0.35%, which is small but has great theoretical and practical significance. There are several factors of the structure bonus, among which are the scale effect, Fiscal revenue and FDI , which have lagged effect. What is more, except freight traffic and governmental R&D, the other factors have positive and significant effect.According to the influence factors of structure bonus, the paper puts forward several suggestions for upgrading the industrial structure of Guangdong province.Firstly, promoting economic growth by the structural optimization and adjustment, attach great importance to structure bonus. Put on the industrial basis for economic growth by structure bonus resulted from restructuring and industrial upgrading. This mainly includes two aspects:1. In the process of regional industrial structure adjustment, promote the rational flowing of production factors. Conform to the demands of economic structure adjustment and promote structure bonus production.2. Pay attention to the role of structure bonus for improving the pure factor productivity. Monitor the structure bonus to provide data to support economic structure adjustment.Secondly, based on empirical analysis result, the paper put forwards advices for cultivating structure bonus, which includes four aspects:1. Pay attention to improving labor quality during the process of structural optimization;2. Increase capital investment to promote the regional industrialization level;3. Develop regional industry clusters to promote scale effect of structure bonus;4. Government should play role in financial area to make guidance in the bonus growth.