Abstract
Using an original conjunction Input-Output table of China, which is comparable with that of, this study examines the industrial structures and their changes in China and Japan. Main findings are as follows: (1) Due to the " high processing degree" and "detourization" in China's production, production-promoting power of the final demand is rising, while its structure isn't. Domestic demand on the third industry is weak, and export has no effect on intra-industry upgrading. Furthermore, the production-promoting performance of investment is low because of the existence of a large imbalance between demand items. (2) Although the dependence structure of production-promoting in China is a kind of "domestic demand induced", the depending degree on export is rising at a high level. (3) Since production expansion in China from 1987 to 1997 is mainly " demand-led" , the role of investment is weak; therefore the consumption-induced production expansion effect is given much more importance. Hence the contribution of export expansion is rising. Furthermore, production expansion effects caused by consumption expanding and structural changes in intermediate inputs are structural lagging, while the degree of export in the intra 2nd industry is slow. (4) It may look that China's industries have been industrializing because of the high production shares. However, rather than structural progressing in the final demand, this progress is depending on large inputs in industrial intermediate goods, mostly on " self circulation mechanism" in the heavy industry sector. Based on the findings, we present several policy proposals on changing of industrial structure.
