Analysis Of Changes And The Factors In The Structure Of Chinese Manufacturing

Manufacturing has an important station in the economy of a country. The change of structure of manufacturing reflects the change of industry structure, and counteracts the development of the economy of our country. The structure of manufacturing is effected by many factors. In them, the important ones is insutrial policy, foreign capital inflow, the tatio of labor-capital, scale of enterprise, the ratio of export, the ratio of inport, R&D and the ratio of State-owned Capital.In the beginning, we developed the CH index to ineasure the change of manufacturing structure. And found that, befor 1997, CH had a fluctuation dramatically, and after that, a continual rising arrived. But the tendency is slowing down. Then, we took the CH as dependent variable, and the upping factors as indepennt variables.thus, a fixed-effects modal is builded. The modal helped us to alalyse the effects of the factors to the manufacturing structure. After that, we studied for the difference between all country and the West-China, the Middle-China and the East-China. The results show that, took the country as a whool,the policy has a most important effect to the CH index. The results of the analysis for the East-China are similar as the whool country's 31 regions. The West-China and Middle-China got inconsistent results.In which, R&D on the West-China and Middle-China has enormous impact.As the results show policy on the structure of the manufacturing industry most affected, we will quantify policy factors.We replace the policy factors as GDP growth rate, and we analysed the long-term relationship between the GDP growth rate and index CH. The results show that Chinese total GDP growth rate has a long-term one-way impact to index CH. All 31 regions in the GDP growth rate and index CH have a long-run bidirectional. East-China and Middle- China has a similar situation as All 31 regions. The West-China GDP growth and CH index were no significant long-term relationships.