Research On International Competitiveness Of Pillar Industries In Jilin Province

At present, the world economy ,which is undergoing a historic change ,has trend to globalization and integration in the industrial structure. Jilin Province is an important part of northeast old industrial base. Many changes have taken place in the international environment that its economic and trade development face.Moreover,Jilin Province's industry ,which is based on the global allocation of economic resources, will involve in the world's labor and cooperation division.Jilin Province's enterprises will competed and cooperated with other enterprises around the world by considering the world market as the stage. It means that whether we can establish clusters and enterprises which possess powerful international competitiveness determine the future of the Jilin Province industrial base, northeast old industrial base and even the country's economic development. Through analyzing the current situation of Jilin Province's pillar industries, the paper tries to probe the measurements and ideas in promoting the industrial competitiveness, play a part in the continual development of Jilin province's economy, and provide reference in the procession of improving china's international competitiveness of industry and promoting the development of china's economy.For a long time, many experts and scholars have explored the cause of their international competitiveness. The new modern trade theories, from classical trade theory (such as British classical economists Adam Smith's absolute cost of the theory) to Economies of scale theory, have made a large numbers of discussion on the industrial international competitiveness, but the only one which genuinely explains the advantages of industries'or enterprises'competitiveness in one country, has been put forward by Michael Porter of Harvard University.Michael?Porter put forward four-stage theory on the industry's international competitiveness's growth and explained the diamond model with which the country (industries or enterprises) obtained a competitive advantage in the international market. Porter believes that elements of the conditions and needs, related and support industries, business strategy, and the status of structure and competition, and so on can be summed up as a fundamental element which decides one country's specific competitive advantage of industries. The relationship among these four basic elements shapes into diamond-shaped. And the stages of industrial international competitiveness's growth can be divided into four stages: factor-driven stage, investment-driven stage, innovation-driven stage and wealth-driven stage.Basing on this theory, the paper saying that " industrial international competitiveness " is a clear visual but ambiguous concept ,and "industry" is defined as the output by competing or the set of service-oriented enterprises.However,"international competitiveness"is a relative concept , its empirical characteristics have showed by the state, enterprises, industries, products .There are more research applicability in industries.The industrial international competitiveness is the concept of international economics which involve the economic relations between a region and nation. Not only is it the sum of a single enterprise competitiveness, but it is also the impact of the contact among in-house industrial enterprises, the status of related industries and supporting industries , as well as the corresponding domestic economic situation and its background. This article begins with one of the specific concrete industries to study the specific industry's international competitiveness. That is why this paper defined the industrial international competitiveness as:"In the condition of the open economy, one countries (or region's) industrial economic system demonstrated its ability to create wealth in international capital flows and international markets."The industrial international competitiveness can also be defined as the sum of industrial economic system's ability to operate around the capital, technology and innovation activities in the industry. It reflects the reasonable character of one country's (or region's) industrial structure, as well as the industrial level in market competition, and the level of economic development in one country's (or region's). "Establishing index system is an important foundation of the evaluation system of industrial international competitiveness. Indicators in index system can be both quantitative and qualitative. By basing on the scientific, systematic, feasible and sustainable principles ,Jilin's opening to the world and economic development ,and the environment of the structure, legality ,policy ,economy and the market, this paper selects five high-tech industries as Jilin Province's pillar industry which contain auto, petrochemical, agricultural products Processing, modern Chinese medicine and bio-medicine, and optoelectronics. It identifies targets through the evaluation of AHP.Then, it sets up the evaluating indicator system of industrial international competitiveness and sums up step by step and achieve quantitative analysis on the issue. This paper has researched on the Jilin Province's pillar industries and quantized calculates the international competitiveness exponent of Jilin province's pillar industries. There are three factors, which consist of the actual competitiveness of regional industrial (the market competitiveness, resource allocation power), the potential competitiveness (industrial growth, industrial innovation, ecological competitiveness, and social competitiveness), the competitive environment (Legal environment for competitiveness, competition policy, environment, the competitiveness of services). These factors interrelate and affect, reinforce each other. These factors are not only the determinate factor on forming competitiveness, but also the result of market competition and the important manifestation of the competitiveness.This paper divides the industries in Jilin province into two groups by quantized calculating five province's pillar industries: one is the industries in procession of the actual competitiveness advantage. The selection criteria to choice it is that competitive market and the allocation of resources are powerful, but the industrial growth, industrial innovation, ecological competitiveness, and social competitiveness are less competitive. These kinds of industries consist of automotive industry and the petrochemical industry. Another is the industries in procession of the potential competitive power .The selection criteria to choice it is that the competitive market and the allocation of resources is weak, but industrial growth, industrial innovation, ecological competitiveness, and social competitiveness are powerful. These kinds of industries consist of agricultural products, modern Chinese medicine and bio-medicine and high-tech industries such as photonics information. Industry group analysis shows obvious characteristics: the main Jilin Province's pillar industries in procession of the actual competitiveness advantage are the resource-intensive industries, and the main pillar in procession of the potential competitive power is technology-intensive industries. This situation was mainly due to the abundant and low-cost natural resources and labor resources in Jilin Province. At the same time, comparing with provinces and municipalities whose economy reaches high-level, Jilin Province is short of technology and capital for research and development.To improve the international competitiveness of pillar industries in Jilin Province, Jilin Province should considerate its unique economic, social and natural conditions, the level of industrialization, industrial foundation and structure, as well as the status quo of industrial development around, it should consider the current specific environment at home and abroad and also formulate corresponding countermeasure to against the international competitiveness's disadvantage of the pillar industries in Jilin Province.Combining the above arguments ,this paper makes the following recommendations on enhancing the international competitiveness of the pillar industries in Jilin Province: First, highlight the market-oriented and achieve a fundamental change in the industry; Second, achieve the technology's innovation and promote the industrial development constantly; Third, establish an open and fair market order , and transform government functions;Tourth, speed up the industrial restructuring, fifth ,speed up the cultivation and the accumulation of knowledge, sixth, strengthen the building and the protection of eco-environmental and improve the competitiveness of industry.