ANALYSIS OF THE DYNAMIC CONTROL MODEL OF INDUSTRY STRUCTURE IN THE WEST OF CHINA

Restructuring and optimizing the industry structure is one of the most important work in the Great West Developing of China. This paper establishes a dynamic control model of industry structure of the West with the theory of gray systems, analyses the strategies and policies in the Great West Developing of China. The conclusion is that, to optimize the industry structure of the West, it is essential to develop the third industry which is strongly associated with other industries and absorbs labor force very well and to accelerate investment in the west, especially in the second and the third industry, in order to upgrade the level of modernization of the local agriculture and industry, as well as to promote the labor dense industries so that more jobs are provided while in some well conditioned provinces to transfer the resource dense industries to the labor dense industries and then to the technology dense ones.