| This paper presents a disputable but important topic about industrialization, capital efficiency and economic growth in China. There is no denying the fact that China has entered a stage featuring a strong and sustainable"heavy-industrialization". The overheated development of houses, automobile, infrastructure has caused the iron, nonferrous metal, building materials, machinery and chemical industry to follow, which has ultimately resulted in an extreme shortage of coal, oil and electricity.The first chapter introduces classic economic growth theories, specifically the measurement model and results of Simon Kuznets, as well as major industries and related theories in each economic stage of industrialized countries.The heavy-industrialization principle put forward by Walter Hoffmann is cited in the second chapter, which also concluded the dispute over the theory in China since 2004.The third chapter focuses on the heavy-industrialization reality in China's present economy and analyses the net loss of capital investment for the last 25 years. The economic index of ICOR is also measured and applied to explore the Chinese economic background.On the basis of mentioned analysis, the last chapter concluded"WENZHOU Model"and its government-oriented trend of heavy-industrialization at first. Then the net loss of capital efficiency has been founded by the measurement of local ICOR. Finally, the possible policy which should be adopted by government has been issued in the competition model of Michael Porter's cluster theory. |
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