An Empirical Study On The Vertical Integration Of The Equipment Manufacturing Industry In Liaoning Based On The Perspective Of Industry Value Chain

Vertical integration is one of the important contents of industrial economics research, due to the vertical integration of the existence of various uncertainties, it in different life cycle of an industry, in different regions, for different industries will have different effects. So, this paper selects the equipment manufacturing industry in Liaoning from the perspective of value chain to study the relationship between vertical integration for technological progress, monopoly, economic growth and industry relevance. Due to the vertical integration for a certain industry, uncertainty in the industry in a certain stage of development affect the economic benefits can be further affect a region economic growth, Liaoning Province is the old industrial bases in Northeast China and its economic growth mainly depends on the equipment manufacturing industry. The article mainly adopts the method of empirical analysis. In for vertical integration of theory analysis, the existence of many uncertainties, the present study is vertical integration for the impact of a single enterprise, for vertical integration for the regional economic activities may bring a monopoly, uncertainty factors in research is almost blank, the innovation of this paper for vertical integration in Liaoning Province for the relationship between technological progress, monopoly, economic growth and the upstream and downstream industry association of empirical research, select specific local representative of the equipment manufacturing industry.Based on the four theories of vertical integration, this paper summarizes the theory of vertical integration based on industry life cycle, monopoly, transaction cost and uncertainty. Under the premise of the review of the theory, economics based on the research object of this paper, so that the industry value chain of four vertical integration hypothesis, namely:the relationship between vertical integration and technology progress assumption, hypothesis of vertical integration and monopoly, vertical integration and upstream and downstream enterprises association hypothesis and vertical integration and economic growth assumptions. According to these four assumptions, we select the 2003-2014 macroeconomic data, the main source of data for statistical yearbook of Liaoning Province, according to the original data estimates from vertical integration index, total factor productivity, economic growth rate, CR10 index and between the upstream and downstream industry influence and sensitivity coefficient. Then according to the data, the study object, time series regression analysis, draw the corresponding conclusion for the four hypotheses, namely:equipment manufacturing industry vertical integration and technology progress between negative correlation, the equipment manufacturing industry vertical integration monopoly, and there is a positive correlation between, the equipment manufacturing industry vertical integration and the upstream and downstream industry association between negative correlation, equipment manufacturing industry vertical integration and economic growth rate between not significant negative correlation, and give the relationship existing economic explanation. Finally, based on the empirical analysis of the conclusions, combined with the actual situation of the development of the equipment manufacturing industry in Liaoning Province, the conclusion and suggestions are given.