By Xu Zhaoyuan, Research Department of Industrial Economy, DRC

Research Report, No.317, 2021 (Total 6382) 2021-10-29

Abstract: Based on analyses of input and output, the proportion of manufacturing industries in an economy can be affected by both supplies and demands. The former includes the proportion of input in goods manufacturing, the value-added rate of different industries, and the proportion of imports in total industrial supplies. The latter consists of the consumption of households and governments, the proportion of investment in total demands and investment structure, as well as the proportion of goods and service exports in total demands. Empirical research findings show that the proportion of manufacturing industries in different economies can be affected by four indicators, with significance in descending order. The influential factors include differences in the value-added rates of different industries, especially those of manufacturing industries, contribution of foreign trade to economic growth, notably the proportions of import and export of manufactured goods, the proportion of household consumption in final demands and the structure of household consumption, and the proportion of input in goods manufacturing in total industrial input. Due to different conditions, the comparison on the proportion of manufacturing industries in different economies should be prudent.

Keywords: the proportion of manufacturing industries, industrial structure, intensity of manufacturing industries, structural upgrading