Economic Growth Effects of Industrial Restructuring and Productivity Improvement——Analysis of Dynamic Spatial Panel Model with Chinese City Data

This paper constructs a two-sector economic model for testing the economic effects of industrial restructuring and TFP improvement with dynamic spatial panel model through the statistics of Chinese285 cities level data from 2003 to 2012.The study concluded that space spillover effect is an important factor to investigate the adjustment of industrial structure and productivity gains impact on economic growth.From the overall perspective,the economic momentum in China's cities has been converted to TFP increase from industrial restructuring,and the service tendency of industrial structure adjustment is an important reason of China's economic development entered a structural reduction phase.There are obvious constraints by the stage of economic development and urban population size in the economic effects of industrial restructuring and productivity improvement.Economic in the stage of industrialization is increasingly dependent on of total factor productivity and economic of urbanization stage can still get a more obvious structural bonus by rationalization of industrial structure adjustment.More than a medium-sized city's economic momentum is gradually converted to TFP growth,while the economic development of small and medium cities need to promote the industrial structure adjustment carefully to avoid damage to industrial structure structural growth features.TFP is not only the main driving force for China's future economic growth,but also is the main way to resolve the industrial structure adjustment and other factors to affect negative impact on economic growth.