What is industrial structure and economic structure

Industrial structure, also known as the sectoral structure of the national economy. The composition of the national economy between and within each industrial sector. The industrial or sectoral structure of social production arises and develops on the basis of the general and special division of labor. The study of industrial structure is mainly concerned with the relationship between the two major categories of the means of production and the means of living; from the sectoral point of view, it is mainly concerned with the relationship between the sectors of agriculture, light industry, heavy industry, construction, and commercial services, as well as the internal relationship of each industrial sector. The factors determining and influencing a country's industrial structure are generally of the following types: (1) the demand structure, including the ratio of intermediate demand to final demand, the level and structure of social consumption, the ratio of consumption and investment, and the level and structure of investment, etc.; (2) the structure of resource supply, with the status of the possession of labor and capital and the relative prices between them, and the status of a country's natural resource endowment; (3) scientific and technological factors, including the level of science and technology and the development of scientific and technological innovation. (3) scientific and technological factors, including the level of science and technology and the ability and speed of scientific and technological innovation development, as well as the direction of innovation, etc.; (4) the impact of international economic relations on the industrial structure, such as import and export trade, the introduction of foreign capital and technology and other factors.

The heightened industrial structure is also called the advanced industrial structure. It refers to the process of transferring the focus of a country's economic development or the center of gravity of industrial structure from the primary industry to the secondary industry and the tertiary industry one by one, marking the level of a country's economic development and the stage and direction of development. The heightened industrial structure is often reflected in the process of changes in the ratio of output value, employed persons and national income among various industrial sectors. Generally speaking, the heightened industrial structure is manifested in the most appropriate industrial structure for different periods of a country's economic development, which is mainly measured by: (1) the principle of income elasticity (income elasticity criterion), i.e., the ratio of the increase of each unit of income to the increase of the demand for a certain commodity. If the increase in demand due to the expansion of income can be transformed into commodities with high income elasticity, the growth rate of exports can be increased accordingly, which is more desirable for the overall economic growth; (2) the principle of the rate of increase in productivity (the principle of productivity increase). In order to export commodities with high income elasticity, it is necessary to have sufficient international competitiveness, so the best choice is to focus on industries with high rate of increase in production or industries with high possibility of technological development; (3) the principle of technology, security, and group, i.e., from the long-term point of view, the driving force of economic development is technological innovation, so that industries that can become the core sectors of technological innovation in the future cannot be easily given up, even though they are at a disadvantage at the moment. For the stable development of a country's economy, it is in fact required to have a certain degree of national security or industries capable of safeguarding the prestige of the country; for the balanced development of industrial sectors, it is necessary to form a wider range of industrial groups. The state of industrial structure that meets the above three criteria can be called the most appropriate state of a country's industrial structure in a certain period of time, and at the same time, it also indicates that the industrial structure of the country's stage on the high level of industrial structure to reach the level of the situation.

Second, industrial classification

In economic research and economic management, the classification methods often used are two major fields, two major categories of classification, the classification of three industries, the classification of resource-intensity and the international standard industrial classification.

(a) two major fields, two major categories of classification. This classification is according to the nature of production activities and their product attributes of industry classification. According to the nature of production activities, the industrial sector is divided into material material production sector and non-material material production sector of two major areas, the former refers to engage in the production of material materials and the creation of material products, including agriculture, industry, construction, transportation, post and telecommunications, commerce, etc.; the latter refers to not engaged in the production of material materials and only provide non-material services, including science, culture, education, health, finance, insurance, consulting and other sectors. The latter refers to sectors that do not engage in the production of material goods but only provide non-material services.

(ii) three industry classification. This classification is based on the historical development of social production activities in the order of the division of industrial structure. Products taken directly from nature is called the primary sector, the primary product reprocessing sector is called the secondary sector, for production and consumption to provide a variety of services is called the tertiary sector. This classification method has become a more common classification method of industrial structure in the world.

China's tertiary industry is divided into:

Primary industry: agriculture (including planting, forestry, animal husbandry and fishery)

Secondary industry: industry (including extractive industry, manufacturing industry, electric power, gas, and water production and supply industry) and construction industry

Tertiary industry: all other industries except primary and secondary industries. According to the actual situation in China, the tertiary industry can be divided into two major parts: one is the circulation sector, and the other is the service sector. Specifically, it can be divided into four levels:

The first level: circulation sector, including transportation, warehousing and postal and telecommunication industry, wholesale and retail trade, catering industry.

The second level: the production and life services sector, including finance, insurance, geological exploration, water management, real estate, social services, agriculture, forestry, animal husbandry, fishery services, transportation support industry, integrated technical services.

The third level: to improve the level of science and culture and the quality of the population services, including education, culture and art, radio, film and television industry, health, sports and social welfare industry, scientific research industry.

The fourth level: sectors serving the needs of the public, including state organs, political party organs and social organizations, as well as the military, police and so on.

(C) resource-intensive classification

This method of industrial classification is divided according to the different resources invested in each industry, the main position of the standard. According to the relative intensity of the three factors of production of labor, capital and technology in each industry, the industry is divided into labor-intensive, capital-intensive and technology-intensive industries.

1, labor-intensive industries. Refers to the production mainly rely on the use of large quantities of labor, while the degree of reliance on technology and equipment is low industry. The standard of measurement is in the production cost of wages and equipment depreciation and research and development expenditures compared to the proportion of large. Generally speaking, at present, labor-intensive industries mainly refer to agriculture, forestry and manufacturing industries such as textiles, clothing, toys, leather and furniture. With technological progress and the application of new processes and equipment, the technology and capital intensity of labor-intensive industries in developed countries are also increasing and gradually diverging from labor-intensive industries. For example, the food industry in developed countries is classified as capital-intensive industries.

2, capital-intensive industries. Refers to the unit cost of the product, the cost of capital compared to the cost of labor accounted for a larger proportion of each worker occupied by the amount of fixed capital and working capital higher industry. Currently, capital-intensive industries mainly refer to the iron and steel industry, general electronics and communications equipment manufacturing, transportation equipment manufacturing, petrochemical, heavy machinery industry, electric power industry and so on. Capital-intensive industries are mainly distributed in basic industries and heavy processing industries, and are generally regarded as an important foundation for the development of the national economy and industrialization.

3, technology-intensive industries. Refers to the production process, the technology and intellectual factors rely on significantly more than other factors of production dependent industry. Currently technology-intensive industries include: microelectronics and information products manufacturing, aerospace industry, atomic energy industry, modern pharmaceutical industry, new materials industry.

The current microelectronics and information products manufacturing industry, represented by the technology-intensive industries are developing rapidly, and have become the leading industries driving the economic growth of developed countries. Therefore, it can be said that the level of development of technology-intensive industries will determine a country's competitiveness and prospects for economic growth.

(4) International Standard Industrial Classification

In order to make the statistics of different countries comparable, the United Nations promulgated the International Standard Industrial Classification of All Economic Activities <<> (ISIC). The third revision of the ISIC, dated 1988, is currently in use. The ISIC is divided into 17 sectors A-Q***, including 99 industry categories. These 17 sectors are: A, Agriculture, hunting and forestry; B, Fishing; C, Mining and quarrying; D, Manufacturing; E, Electricity, gas and water supply; F, Construction; G, Wholesale and retail trade, repairs; H, Hotels and restaurants; I, Transportation, warehousing and communications; J, Financial intermediation; K, Real estate, renting and leasing; L, Public ****ministration and defense; M, Education; N, Health care and social work; O, social and personal services; P, domestic workers; Q, offshore organizations and institutions.

China's National Economic Industry Classification and Codes (NEDIC) was developed with reference to the International Standard Industrial Classification of All Economic Activities (ISIC), so the industrial classification is basically the same as that of most countries, including the Organization for Economic Co-operation and Development (OECD).

Third, the trend of industrial structure change

(a) The trend of structural change among the three industries

First, the proportion of the added value and employment of the primary industry in the gross national product and the total labor force has been declining in most countries. Until the 1970s, in some developed countries, such as the United Kingdom and the United States, the declining trend of the proportion of value added and labor force in the primary industry began to weaken.

Secondly, the proportion of GNP and total labor force accounted for by value added and employment in the secondary industry was on the rise in most countries before the 1960s. But after the 1960s, the United States, Britain and other developed countries in the industrial sector added value and employment in the gross national product and the proportion of the total labor force began to decline, in which the traditional industry, the downward trend is more obvious.

Third, the added value and employment of the tertiary industry accounted for the proportion of GNP and the total labor force of all countries have been on the rise, and the tertiary industry in developed countries developed more rapidly after the 1960s, with the proportion of the tertiary industry exceeding 60%.

From the change trend of the proportion of the three industries, it can be seen that in the industrialization stage of the world, industry has been the dominant sector in the development of the national economy. Developed countries in the completion of industrialization after the gradual transition to the "post-industrialization" stage, high-tech industries and services are increasingly becoming the dominant sector of national economic development.

(B) Trends in the structure of industries within the industry

Industrialization can be divided into three stages:

1, the development of light industry as the center stage. Like the United Kingdom and other European developed countries, the process of industrialization started from the textile, food processing and other light industry.

2. The stage of development centered on heavy chemical industry. In this stage, heavy and chemical industries such as chemical, metallurgy, metal products, electric power, etc. have developed greatly, but the fastest growing is the raw material industry such as chemical and metallurgy.

3, the development stage of high industrial processing degree. In the late stage of the development of heavy chemical industry, industrial development on the dependence of raw materials decreased significantly, the growth rate of electromechanical industry accelerated significantly, the processing of raw materials is getting longer and longer chain, parts and components, and other intermediate products in the industrial output value accounted for a rapid increase in the proportion of industrial production value, industrial production appeared to be "roundabout" characteristics. Processing degree of improvement, so that the technological content of products and value-added greatly increased, and the consumption of raw materials and disproportionate growth, so the industrial development of technology and equipment dependence greatly increased, deep processing industry, processing and assembly industry has become the most important industry within the industry.

The above three stages, reflecting the general situation of industrial structure change in the process of traditional industrialization, does not mean that every country and every region are completely in accordance with this order to develop. For example, after the establishment of new China, under specific historical conditions, is the first to focus on the establishment of a certain heavy industrial base, the reform and opening up of the early days and then back to the development of light textile industry "remedial", and now to information technology to drive industrialization.

(C) the internal structure of the agricultural structure of the structural change trend

With the development of agricultural productivity, the proportion of planting industry is a declining trend, but its production level is increasing; the proportion of animal husbandry is gradually increasing; forestry is increasingly from the simple provision of forest resources to pay attention to the environmental and ecological functions, to maintain and improve the forest cover is increasingly being attached importance to; fisheries is increasingly from the simple dependence on fishing to moderate fishing, focusing on the forest cover, the fisheries industry is increasingly from the development of the agricultural industry to the development of the agricultural industry. The proportion of fisheries is steadily increasing as it shifts from relying solely on fishing to moderate fishing and emphasizing aquaculture.

Economic Structure

Refers to the composition and structure of the national economy. It has multiple meanings: (1) From the sum of certain social relations of production, it is mainly expressed through the proportion and composition of different economic components of ownership of the means of production. (2) Examined from the composition and structure of the various sectors of the national economy and the various aspects of social reproduction, it includes the industrial structure (e.g., the composition of the primary, secondary and tertiary industries, and the composition of agriculture, light industry and heavy industry, etc.), the distributional structure (e.g., the ratio of accumulation to consumption and its internal structure, etc.), the exchange structure (e.g., the price structure, the structure of imports and exports, etc.), the consumption structure, the technological structure, and the structure of the labor force. (3) In terms of the scope included, it can be divided into the overall structure of the national economy, sectoral structure, regional structure, and enterprise structure. (4) From different perspectives to examine the need for specialized research, can be divided into economic organization structure, product structure, personnel structure, employment structure, investment structure, energy structure, material structure, and so on.

Certain socio-economic and technological conditions require a certain economic structure that is compatible with it. Between the various components of the economic structure, are organically linked together, with objective constraints, not arbitrarily establish any kind of economic structure is reasonable. Whether a country's economic structure is reasonable depends mainly on whether it is suitable for the actual situation in the country; whether it can make full use of all favourable factors at home and abroad; whether it can make reasonable and effective use of human, material and financial resources and natural resources; whether it can ensure the coordinated development of the various sectors of the national economy; whether it can vigorously promote scientific and technological progress and labour productivity; and whether it is conducive both to promoting immediate economic growth and to long-term economic development.

The so-called "economic development" is a system of economic growth.

The so-called economic restructuring, according to the needs of national economic development, the national economy in various fields, sectors, regions and various economic components of the contrast between the relationship and the combination of the situation to adjust, in order to improve the organic links between the material production sector and the proportion of the relationship, the use of technological progress in the leading role, to promote the rationalization of the structure of the national economy, and to promote the development of the entire national economy. The development of the national economy as a whole is being pushed forward. At present, our country is making strategic adjustments to its economic structure in accordance with the state of national economic development, taking full account of the trend of accelerated development of science and technology in the world and the reorganization of the international economic structure, and with a view to comprehensively improving the overall quality and efficiency of the national economy and enhancing its comprehensive national strength and international competitiveness. This is an urgent requirement and long-term task for the development of the national economy.