The Experience and Inspiration of Transformation and Upgrading of Traditional Industries in Typical Domestic Regions

Abstract During the 12th Five-Year Plan period, how to realize the transformation and upgrading of traditional industries in the context of new industrial transmutation has become an issue that must be seriously studied in the process of regional economic development. This paper selects the typical areas such as eastern coastal areas, resource-based areas, private economy pioneer areas, etc., analyzes and refines the practical experience of the transformation and upgrading of traditional industries, and expects to bring inspiration and suggestions for the transformation and upgrading of traditional industries in Zhejiang in the aspects of the development path, guarantee mechanism and ways and means.

Keywords traditional industry, transformation and upgrading, comparative study, policy suggestions

Generally speaking, traditional industry refers to the industry which has been developed for a long time, the production technology has been basically mature, the development speed tends to be slowed down after a high speed growth, the contribution to the national economy decreases gradually, and the utilization rate of resources and environmental protection level are usually low. The traditional industries referred to in this paper are mainly traditional industries. As far as Zhejiang Province is concerned, traditional industries mainly include textile, clothing, electrical machinery, metal products, chemical fiber, machinery and automobile, plastic products processing and so on. In order to better study the transformation and upgrading strategy of traditional industries in Zhejiang Province, we have looked for the eastern coastal region which is similar to the region where Zhejiang Province is located as the main object of comparative analysis, and at the same time, we have drawn on the practice experience of two typical regions, namely, the resource-based region and the private economy pioneering region, with a view to providing reference for the formulation of the development strategy of the traditional industries in Zhejiang Province and the city.

One East Coast traditional industry transformation and upgrading experience

Here mainly choose Shanghai, Guangdong, Fujian, Zhejiang, Shandong, Jiangsu and other six representative provinces and cities, the reason why they are categorized as one is because they have the ****same characteristics of the externally oriented economy, and there is a certain ****some in the transformation and upgrading of the traditional industry to be said. Through the comparative analysis of the six provinces and cities in terms of industrial structure, industrial organization, Hoffman's ratio, fixed asset investment structure, etc., the transformation path of their traditional industries is sorted out and summarized.

1. Comparison of industrial structure

The organizational structure of industry is an important part of the industrial structure. With the rapid growth of the total economy, the ownership structure of the eastern coastal provinces has made a historic leap forward, forming a new pattern with public ownership as the main body, coexisting with multiple ownerships, and **** the same development. The following characteristics can be seen from Table 1: (1) in terms of the proportion of state-owned enterprises, the five provinces of Zhejiang, Jiangsu, Shandong, Guangdong, Fujian and Shanghai have a proportion of less than 10%, of which Jiangsu is below 5%; (2) Shanghai, Guangdong and Fujian are characterized by the development and growth of foreign and Hong Kong, Macao and Taiwan-invested enterprises, of which the industrial output value of foreign and Hong Kong, Macao and Taiwan-invested enterprises accounts for the province's total industrial output value of 50% or so, especially in Shanghai, where the proportion reaches 61.13%, showing a strong openness. (3) The proportion of non-state-owned enterprises, especially private enterprises, is the highest in Zhejiang, in which the proportion of total industrial output value of private enterprises reaches 44.35%, all higher than that of other provinces, indicating that Zhejiang is in the forefront of the development of private economy.

Table 1 List of industrial output value of industrial

enterprises above scale in six eastern coastal provinces in 2010 (unit: billion yuan)

Province State-owned

enterprises Collective

enterprises Shareholding system

Enterprises Foreign-owned enterprises and enterprises invested by Hong Kong, Macao and Taiwan

Enterprises privately owned enterprises

Zhejiang 51394.20 3331.26 123.12 237.91 13104.16 22792.11

Jiangsu 92056.48 4451.71 1289.82 4632.18 36592.50 32644.65

Shandong 83851.40 5486.12 2632.65 22896.1 14365.94 30408.87

Guangdong 85824.64 4595.82 767.03 30802.53 45519.23 16201.08

Fujian 21901.23 1478.99 551.15 2929.96 10657.57 6205.94<

Shanghai 30114.41 1752.99 244.53 2877.23 18407.67 3483.32

Source: 2011 Statistical Yearbook of Relevant Provinces

2. Comparison of Hoffmann's Proportion

German economist W.G. Hoffmann established the "Hoffmann Ratio" in 1931. The German economist W.G. Hoffmann in 1931 established the "Hoffmann Ratio", i.e. the ratio of the net output value of the consumption industries to that of the production industries. In the process of industrialization, Hoffmann's ratio was decreasing. As can be seen from Table 2, the Hoffman ratios of the eastern coastal provinces of Zhejiang, Jiangsu, Shandong, Guangdong, Fujian and Shanghai have all been less than 1, which indicates that the industrialization level of these provinces is relatively high, and that they have reached the fourth stage of industrialization and entered the stage of heavy industry. Among them, Shanghai has the highest level of industrialization, with the Hoffman ratio reaching 0.28 in 2010, while Zhejiang has a lower level of industrialization, and was only higher than Fujian in 2010, with a Hoffman ratio of 0.69.

Table 2 Hoffman ratios of eastern coastal provinces

2005 2006 2007 2008 2009 2010

Zhejiang 0.85 0.78 0.76 0.71 0.72 0.69

Jiangsu 0.45 0.43 0.41 0.37 0.37 0.36

Shandong 0.59 0.55 0.54 0.51 0.51 0.48

Guangdong 0.68 0.62 0.62 0.62 0.64 0.62

Fujian 0.81 0.83 0.82 0.86 0.89 0.85

Shanghai 0.34 0.32 0.3 0.29 0.29 0.28

Source: Statistical yearbooks of relevant provinces in the past years

3. Comparison of the structure of investment in fixed assets

Practice has shown that the structure of industrial investment has a greater impact on the transformation and upgrading of the industry The structure of industrial investment has a greater impact on the transformation and upgrading of industries. As shown in Table 3, the fixed asset investment in tertiary industry in the eastern coastal provinces has become the main driving force for the growth of investment in fixed assets of the whole society, and the proportion of fixed asset investment in tertiary industry in Shanghai, Fujian, Guangdong and Zhejiang has exceeded 50%. Among them, the proportion of tertiary fixed asset investment in Shanghai has reached 72.7%. Overall, in 2010, the structure of the proportion of tertiary industry investment in coastal provinces has constituted a "three-two-one" structure, and the industrial investment structure is being gradually optimized.

Table 3 Structure of Fixed Asset Investment in Eastern Coastal Provinces (2010) (Unit: 100 million yuan)

Total Investment in Fixed Assets of the Whole Society Investment in the First Industry Investment in the Second Industry Investment in the Third Industry Investment in the Third Industry

Investment in the Three Industries

Investment Proportion

Zhejiang 11451.98 60.12 4656.38 6735.47 0.5∶40.7∶58.8

Jiangsu 23184.28 221.91 12463.58 10498.78 0.9∶53.8∶45.3

Shandong 23276.69 551.82 11332.35 11392.52 2.4∶48.7∶48.9

Shandong 23276.69 551.82 11332.35 11392.52 2.4∶48.7∶48.9 48.7∶48.9

Guangdong 16113.19 181.83 5241.53 10689.83 1.1∶32.5∶66.4