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A Comparative Study on the Benefit of Industrial Structure in Guangzhou and Shenzhen

Zhang Hong

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Abstract

In this article the industrial structure in Guangzhou and Shenzhen is studied, combined with capital profit tax rate, the benefit index method of industrial structure is used,to analyze the structural bebefit as well as the proportions of the industrial sectors in the two cities. The result demonstrates that,the benefit of overall industrial structure of Guangzhou is more superior than that of Shenzhen. The heavy industry structure of Guangzhou is improving, while the high-tech industry in Shenzhen is at an early development stage, and its processing industry structure is characterized by the unrealistically high phenomenon. The authors consider that Guangzhou’s labor-intensive industry with some traditional advantages should not fully withdraw in the time being ,while its technology should be updated; the efficiency of fund utilization should be improved; the sectors that are in the vertical supply chain of the automotive industry should grasp opportunities for development. Shenzhen could timely develop some raw material industries. For realizing leap-forward development and making breakthroughs of innovation, the leading industries in Shenzhen, such as computer and electronic equipment manufacturing, communications equipment manufacturing, and other high-tech industries should be focused on the reserve of quality, gradually grasp the core technology of the industry, promote their independent innovation.

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What this paper is about

In this article the industrial structure in Guangzhou and Shenzhen is studied, combined with capital profit tax rate, the benefit index method of industrial structure is used,to analyze the structural bebefit as well as the proportions of the industrial sectors in the two cities. The result demonstrates that,the benefit of overall industrial structure of Guangzhou is more superior than that of Shenzhen. The heavy industry structure of Guangzhou is improving, while the high-tech industry in Shenzhen is at an early development stage, and its processing industry structure is characterized by the unrealistically high phenomenon. The authors consider that Guangzhou’s labor-intensive industry with some traditional advantages should not fully withdraw in the time being ,while its technology should be updated; the efficiency of fund utilization should be improved; the sectors that are in the vertical supply chain of the automotive industry should grasp opportunities for development. Shenzhen could timely develop some raw material industries. For realizing leap-forward development and making breakthroughs of innovation, the leading industries in Shenzhen, such as computer and electronic equipment manufacturing, communications equipment manufacturing, and other high-tech industries should be focused on the reserve of quality, gradually grasp the core technology of the industry, promote their independent innovation.

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Available abstract

In this article the industrial structure in Guangzhou and Shenzhen is studied, combined with capital profit tax rate, the benefit index method of industrial structure is used,to analyze the structural bebefit as well as the proportions of the industrial sectors in the two cities. The result demonstrates that,the benefit of overall industrial structure of Guangzhou is more superior than that of Shenzhen. The heavy industry structure of Guangzhou is improving, while the high-tech industry in Shenzhen is at an early development stage, and its processing industry structure is characterized by the unrealistically high phenomenon. The authors consider that Guangzhou’s labor-intensive industry with some traditional advantages should not fully withdraw in the time being ,while its technology should be updated; the efficiency of fund utilization should be improved; the sectors that are in the vertical supply chain of the automotive industry should grasp opportunities for development. Shenzhen could timely develop some raw material industries. For realizing leap-forward development and making breakthroughs of innovation, the leading industries in Shenzhen, such as computer and electronic equipment manufacturing, communications equipment manufacturing, and other high-tech industries should be focused on the reserve of quality, gradually grasp the core technology of the industry, promote their independent innovation.

Key concepts: Automotive industry, Business, Industrial organization, Profit (economics), Manufacturing, High tech, GRASP, Telecommunications equipment

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