The Influence Of Marketization On China's Industrial Structure Upgrading

With the improvement of China's overall economic power,government is paying more attention to the improvement of economic efficiency under supply-side reform,which is different from the previous pursuit of high economic growth.It is unwise and undesirable to sacrifice environment and potential growth for short-term growth.Among the many factors of economic growth,the marketization process plays an important role.The market-oriented reform has remarkably promoted industry restructuring by changing institutional environment.Judging from the industry structure,China is already an industrial country.However,we should realize the fact that the industrial structure remains to be improved.It is critical to emphasize the institution and competition efficiency of marketization,which means keeping the core role of the market in resource allocation.This article learns from the previous scholars' research on the construction of marketization index,and innovatively chooses 4 first-level indicators,13 secondary indicators,and 17 third-level indicators to synthesize China's marketization index that reflect China's marketization process from 2005 to 2016.The index covers the range of government,state-owned economy,factor market,legal environment and intermediary organizations.The original data are searched from various statistical yearbooks and therefore have a certain degree of systematicness and objectivity.Accroding to the index data,some regions in China and the overall marketization have experienced a period of stagnation after the financial crisis in 2008,but overall they have maintained an upward trend from 2005 to 2016.The degree of marketization in the eastern region is the highest,followed by the central region and the western region.Based on the previous scholars' research,this paper adds marketization degree to the analysis of the influencing factors of industrial structure upgrading,which expands research scope.After theoretical analysis,new variables such as marketization and technical innovation are added to the Chenery economic structure model.The marketization index is calculated through the synthesis of multiple indicators,which is representative and innovative.Finally this paper proves that the marketization process has a significant positive effect on the industry structure upgrading through the empirical analysis of the provincial panel data from 2005 to 2016.From the perspective of different areas in China,the degree of marketization in eastern and central China is more effective than the western region in upgrading industrial structure.In addition,the paper also analyzes that the development of non-state-owned economy has the greatest impact on the upgrading of industrial structure,followed by the legal system and intermediary organization development,but the relationship between the government and the market is negatively related to the upgrading of the industrial structure.