Title: Impact on Industrial Structure Evolution of International Division of Labor and Inspiration to China:Based on Empirical Analysis of Transnational Panel Data of Newly Industrializing Countries
Abstract: This paper analyzes the relationship between the international division of labor and the evolution of industrial structure from the perspective of demand,and proposes a theoretical hypothesis that the international division of labor influences the change of a country’ s industrial structure through the direct effect and indirect effect,and the income effect,correlative effect and the crowding out effect resulting from that.The paper provides an empirical test with transnational panel data of fifteen newly industrializing countries that enter into the mature period of industrializing process during the 1980s,and the result is: these newly industrializing countries experience the industrial structure’ s transforming to service economy,and at the same time the comparative advantage in the manufacturing industry and the ratio of dependence on foreign trade drop,while the ratio of dependence on domestic final consumption rises.The economic implications are: if these countries reinforce the status of the manufacturing process in the international division of labor too much and mainly depend on trade in goods to promote economic growth for a long time,the industrial structure’ s transforming from industrial economy to service economy may be hindered;but if they reduce their dependence on the trade in goods and increase their dependence on domestic demand as the comparative advantages of the manufacturing sector drop,the result can be reverse.The conclusion of this paper will be meaningful for China’s economic transformation.
Publication Year: 2012
Publication Date: 2012-01-01
Language: en
Type: article
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