The Path Dependence of Industry Structure Adjustment in Chongqing: Central Government Political Decision

Wei Liu, Ziwei Huang and Abdullah Muhammad Ibrahim

Asian Economic and Financial Review, 2013, vol. 3, issue 8, 978-990

Abstract: Reviewing Chongqing's industrial structure evolution in the history view angle since Chongqing was opened and quantitative analyzing with shift-share analysis and Structure effect index after the Reform and Openness, this paper explores the rise of political status of Chongqing that caused industrial structure adjustment all the time. By Structure-Conduct-Performance Model, we explain that the central government's political decision is one of the major reasons. Its influence presents a continuity spiral structure. Not only on the market development and technology progress, industry structure adjustment much depends on central government political decisions in Chongqing. Its starting points are national interest, orderly market competition and the people's livelihood economy. In doing so, we suggest that finding the equilibrium point between plan economy and market economy is very important in the process of industry structure adjustment and upgrade. That's maybe an exploration for centralized state upgrading the industry structure in other areas through the political position. In the exploring process, the possible contradictions and setbacks may provide more practice to China's reform and development.

Keywords: Central government's political decision; Industry structure; Path dependency; Equilibrium point (search for similar items in EconPapers)
Date: 2013
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