An empirical research on economic growth from industrial structure optimisation in the Three Gorges Reservoir area

There are many factors that cause EG, and optimisation of the industrial structure is only one of the more important ones. According to existing research results [20,21] and related theories, it is shown that technological innovation (TI), foreign trade level (FTL), fixed capital investment (FCI) and budgetary expenditure (BE) may all affect EG. This paper incorporates TI, FTL, FCI and BE as control variables into the research economic model.

Without considering the control variables, the following econometric model was constructed: (1) (EEEE)iiii=αα+β(IIIIII)iiii+μμiiii+εεiiii {\left( {EEEE} \right)_{iiii}} = \alpha \alpha + \beta {\left( {IIIIII} \right)_{iiii}} + \mu {\mu _{iiii}} + \varepsilon {\varepsilon _{iiii}} Considering the control variables, construct the following econometric model: (2) (EEEE)iiii=αα+β(IIIIII)iiii+γγ1(TTII)iiii+γγ2(FFTTFF)iiii+γγ3(FFFFII)iiii+γγ4(BBEE)iiii+μμiiii+εεiiii {\left( {EEEE} \right)_{iiii}} = \alpha \alpha + \beta {\left( {IIIIII} \right)_{iiii}} + \gamma {\gamma _1}{\left( {TTII} \right)_{iiii}} + \gamma {\gamma _2}{\left( {FFTTFF} \right)_{iiii}} + \gamma {\gamma _3}{\left( {FFFFII} \right)_{iiii}} + \gamma {\gamma _4}{\left( {BBEE} \right)_{iiii}} + \mu {\mu _{iiii}} + \varepsilon {\varepsilon _{iiii}} where ii are any of the counties included in the Three Gorges Reservoir area, tt is the year, μmu_iiii is the unobservable effect and ɛɛ_iiii is the random error term.

The influencing factors of regional EG mainly involve investment, import and export trade, science and technology and so on. Therefore, the selection of control variables in this paper mainly involves several aspects such as TI, FTL, FCI and BE.

According to the research needs, the data in this paper adopt the panel data of eight districts and counties in Chongqing's key Three Gorges Reservoir areas from 2010 to 2019. All data come from the 2011 to 2020 Chongqing Statistical Yearbooks, as well as the Statistical Yearbooks of all districts and counties, and the data published online by the Chongqing Statistics Bureau and the Statistics Bureau of all districts and counties in the reservoir areas.

In this paper, StataSE 15 was used for finding that Models (1) and (2) have changes in the intercept terms through F statistics. Therefore the mixed panel data regression model cannot be used. Where after, the Hausman test is used to find a panel regression suitable for Models (1) and (2). The results show that the individual fixed effect model is most suitable. In the individual fixed effect model, in addition to the explanatory variable, the other unobservable effects of the explained variable only change with the individual.

Among the factors affecting the EG of the Three Gorges Reservoir area, in addition to the above-mentioned explanatory variables and explained variables, there are also some unmeasurable or unobservable factors, such as cultural differences, geographical environment and so on. These factors have obvious individual heterogeneity and are relatively stable within a certain period of time, therefore the individual fixed effect model is suitable for empirical research in this paper.

In order to overcome the intra-group autocorrelation, cluster robust standard errors were used, and the regression results are shown in Table 1. The specific analysis is shown as follows.

The impact of ISO on EG. The empirical results of Model (1) showed that optimisation of the industrial structure has a significant role in promoting EG (β β = 14.5, p < 0.01). However, when the industrial structure of the Three Gorges Reservoir area is optimised by 1 unit the average EG of the reservoir area increases to 14.5 units. The empirical results of Model (2) showed that after adding control variables, the promotion of ISO on EG is still very significant (β β = 4.721, p < 0.05). Under the control of other variables, when the industrial structure of the Three Gorges Reservoir area is optimised by 1 unit, the EG of the reservoir area increases to 4.721 units on average. Optimisation of the industrial structure plays a positive and significant role in EG, mainly by improving the utilisation rate of resources and adjusting the mode of EG.

The role of TI in promoting EG is not significant. The main reason is that the economic foundation of the key reservoir areas in the Three Gorges Reservoir Area is weak, the industrial structure level is low, EG still mainly depends on the input of labour and capital, the contribution of total factor productivity is relatively limited, and technological progress and EG are not in harmony; meanwhile the role of TI in promoting EG has not been highlighted.

The FTL does not have a significant effect on EG, mainly due to the low level of economic opening in the key reservoir areas of the Three Gorges; the same as a single economic structure with a very small import and export volume has little effect on EG.

FCI has a significant positive effect on EG (γγ₃ = 0.664, p < 0.05).

The empirical results showed that when FCI increases by 1 unit, the economy of the key reservoir areas in the Three Gorges increases by 0.664 units on average. The eight key districts and counties in the Three Gorges Reservoir Area, except Fuling district, are all located in the urban agglomeration of the Three Gorges Reservoir area in northeastern Chongqing. The economic development infrastructure is relatively backward, the industrial characteristics are not obvious, the industrial chain is short and there is a lack of brand pillar industries. However, the increased FCI is one of the significant contributing factors in EG.

BE has a significant positive effect on EG (γγ₄ = 1.541, p < 0.05). The empirical results show that when the budgetary expenditure of the reservoir area increases by 1 unit, the average EG of the reservoir area is 1.541 units. The reason is that budgetary expenditure played a positive role in promoting the EG of the reservoir area from the aspects of EG mode, EG efficiency and innovation ability of the economy.

First, new urbanisation and rural revitalisation in the reservoir area should be planned and promoted in a coordinated manner, optimizing the layout of urban and rural industries in a larger space, and promoting the free flow, equal exchange, optimised allocation, and mutual support of urban and rural factors to achieve integrated development. Second, to vigorously implement the industrial cluster strategy of rural revitalisation in the reservoir area, vigorously cultivate industrial clusters in rural areas, and drive the high-quality integrated development of urban and rural areas with the derivative effect, agglomeration effect, network effect and innovation effect of industrial clusters. Third, focusing on the characteristics of agricultural products in the Three Gorges Reservoir Area, to intensively process agricultural products, cultural creativity, agricultural technology, sales promotion and other elements, and accelerate the formation of a new pattern of integrated development of urban and rural industries.

First, strengthen planning guidance, formulate a development plan for each characteristic industry based on regional functional positioning and the development foundation of characteristic industries. In addition, strengthen the connection between industrial development plans with economic and social development plans, urban development plans and environmental protection plans etc. Second, strengthen innovation-driven industrial development, strengthen cooperation with universities and research institutes and other units with strong scientific research strength, establish innovation platforms, such as technology innovation and product research and development centres, while at the same time guide innovation resources and elements to gather in characteristic industries. Third, make full use of the geographical indications of the Three Gorges Reservoir area to promote the excellence and strength of characteristic industries. For example, to explore the Three Gorges culture and immigrant culture, the districts and counties in the Three Gorges Reservoir area jointly plan and develop products with a new pattern of integrated development of the Three Gorges tourism with urban and rural industries, and promote the development of tourism in the Three Gorges Reservoir area to take off again. Fourth, rely on China's top 500 private enterprises, including Jinlong Precision Copper Tube Group Co. Ltd., to build a copper tube industry base. Food processing and manufacturing could be developed by relying on Chongqing Fuling Mustard Group Co. Ltd., Jiangsu Hengshun Vinegar Yunyang Condiment Co. Ltd. and other enterprises.

First, improve the agricultural management system. According to local conditions, relying on the advantages of local agricultural resources, expand the main body of new agricultural management and use modern management methods to manage agriculture. Cultivate new types of professional farmers, guide leading agricultural enterprises and farmers to jointly build agricultural industrialisation complexes, integrate the land of individual households, and form large-scale, economical and modern planting. Second, relying on ‘Internet +’ to promote the transformation of the agricultural industry business model, develop ‘Internet +’ characteristic agriculture, and open up the ‘last mile’ for agricultural products to enter the city. Third, vigorously develop late-ripening citrus, expand and strengthen Sanxia citrus, Fengjie navel orange, Kaixian spring orange and other brands, build a demonstration belt of ecological boutique modern citrus industry in the ‘Sanxia Orange Township’ in the Yangtze River Basin, and promote the establishment of the Sanxia Citrus Exchange. Focusing on Wanzhou, Kaizhou, Zhongxian, Yunyang and Fengdu, rationally plan and scientifically deploy livestock breeding bases such as cattle, sheep, rabbits, live pigs and mountain chickens. Support the deployment of ‘Belt and Road’ storage bases for imported grain, oil, meat and aquatic products in Wanzhou.

First, increase financial and taxation support, promote the green transformation of the manufacturing industry, support industry-university-research institutes to jointly build a green design platform, make breakthroughs in key technologies for green development, guide the promotion of financial institutions, explore new investment and financing models for the development of green manufacturing industries and deepen financial support for green manufacturing. Second, give full play to the main role of enterprises, create a green supply chain for products, and comprehensively promote the construction of an efficient, clean and green system. We must use various methods to leverage social forces to establish a guide fund, establish a model of green development and develop advanced technologies. Allow some enterprises or some regions to develop green first. Third, strengthen the implementation of regulations and standards, strengthen the constraints of regulations and standards such as industrial energy conservation and comprehensive utilisation, formulate national standard enterprise standards, promote industrial green upgrades and establish an evaluation mechanism.

First, dig deep into the cultural connotation, vigorously develop experiential leisure tourism agriculture, and promote the integrated development of agriculture, culture and tourism. The contribution rate of tourism to EG in Wushan County is the highest among the key reservoir areas, and it has been established as a national all-for-one tourism demonstration area at the same time as Wulong District in the same reservoir area. Wushan, Fengjie, Yunyang, Fengdu and other districts and counties in the key reservoir areas can make use of their own rich tourism resources, endow preferential policies such as taxation, capital and land. Vigorously develop the ecological cultural tourism industry, and use tourism to drive related industries such as big health industry development. Second, support the cultural excavation, function expansion, facilities and service upgrades of famous scenic spots along the Three Gorges of the Yangtze River, such as Wanzhou Tiansheng City, Fengdu Famous Mountain, Zhongxian Shibao Village, Fengjie Baidi City and Yunyang Zhangfei Temple to build the Yangtze River Poetry and Songs. Third, focus on tourism and leisure, health recuperation, cultural and folk customs, and strive to create a number of characteristic small towns.

Around the industrial chain, deploy the industrial chain around the innovation chain, make full use of advantageous resources, expand the scale and intensity of its development, give full play to economies of scale, and drive the development of other related industries through the comprehensive utilisation and development of resources. In the process of developing advantageous industries, fully extend the industrial chain, and use the industrial chain to drive as many industries as possible to develop together. The construction of the Three Gorges Reservoir Area should be based on the development law of the industrial economy, make overall planning and optimise the industrial layout of the reservoir area. First, optimise and adjust the agricultural industry structure, give full play to characteristic agriculture and brand agriculture, and focus on the development of citrus, mustard, Chinese medicinal materials. Other advantageous industrial belts and characteristic industrial areas, such as Fengjie, Wushan, can cluster the development of brand characteristic fruits. Second, since the ecological environment of the reservoir area is fragile, advanced technology and environmental protection technology should be adopted to develop the ecological economy. For example, Fuling and Shizhu take chemical fertilisers and biomedicine as their core industries, and promote the development of food, building materials, chemicals and other related industries. Third, relying on the golden waterway of the Yangtze River, a modern logistics industry cluster belt in the Three Gorges Reservoir area will be formed along the Yangtze River, and a world-class tourism industry cluster belt will be built in the reservoir area relying on the unique tourism resources of the reservoir area. Fourth, vigorously develop the industry in the park, formulate special preferential policies, attract more similar and related enterprises to enter the park, and relocate some non-related enterprises in compensation, which can quickly form an industrial cluster with characteristics of the reservoir area.