Study On The Impact Of Comprehensive Cost Rising On Industry Competitiveness Of Liaoning Equipment Manufacturing

Equipment manufacturing is an important industry that relate to national economy and the people’s livelihood. It is also has profound influence on the national economy and international competitiveness. Liaoning was known as the "headquarters of China" and it is one of China’s important equipment manufacturing base, which plays an irreplaceable role in national economic development. The history of Liaoning equipment manufacturing can be traced back before the liberation, and during decades of tortuous development, it has achieved remarkable success. At present, Liaoning equipment manufacturing has a wide range of industrial system, which has distinct scale advantages and a solid foundation. However, as the rapid development of Liaoning’s economy, comprehensive cost rising trend is obvious. So it is very urgent to study the following two topics, one is the impact of high comprehensive cost on the competitiveness of Liaoning equipment manufacturing, the other is under the background of rising comprehensive costs, how to promote Liaoning equipment manufacturing competitiveness.Based on the industry competitiveness theory and the comprehensive cost theory as the starting point, this text studies Liaoning equipment manufacturing industry competitive situation. In order to research the degree of rising comprehensive cost in Liaoning, we use the horizontal and vertical comparative analysis. Through constructing the index system of comprehensive cost, and quantitative analyzing the impact which high comprehensive cost on the competitiveness of Liaoning equipment manufacturing, put forward suggestions for promoting Liaoning equipment manufacturing competitiveness. This article is divided into five parts:the first part is the introduction, which illustrates the background and significance of the research, and the relative theory about industry competitiveness, value chain, comprehensive cost and equipment manufacturing. The second part discusses the situation of Liaoning equipment manufacturing competitiveness. This part is mainly elaborates three questions which are related to Liaoning equipment manufacturing industry, they are development history, industry competitive situation, and industry competitiveness factors which are based on diamond model. At last, study the ranking of Liaoning equipment manufacturing in the whole country using cluster analysis. The third part discusses Liaoning equipment manufacturing comprehensive cost situation. Firstly, classify the comprehensive cost from different angles. Secondly, analyze the variation trend of costs related to equipment manufacturing in detail. Thirdly, elaborate the impact of rising comprehensive cost on Liaoning equipment manufacturing. The forth part is the econometric analysis part. In this part, through establishing index system of comprehensive cost and using principal component analysis(PCA) and elastic calculation, study the extent of Liaoning equipment manufacturing impact of comprehensive cost. Then combining with industry competitive theory, conclude the empirical analysis by summarizing the results. The fifth part, provide the suggestions of promoting Liaoning equipment manufacturing industry competitiveness from the aspects of enterprise and government.