Changes in the Economic Functions of Beijing,1992-2002: Based on the Inter-industrial Linkage and Economic Base Theory

Integrating the industrial group and economic base analysis, this paper proposes the concept of basic sector group in which key industries belong to basic sectors, and analyzes changes in the economic functions of Beijing during 1992-2002. Based on input-output tables of Beijing in 1992, 1997 and 2002, several critical industrial groups are identified applying principal component-factor analysis and the basic sectors are singled out through net exporting analysis in corresponding years. Industrial group analysis in this paper only emphasizes the inter-industrial goods linkages. During the period, the steel-mechanical industrial group confronted serious resource limitations and environmental protection requirements while the petroleum processing chemical industrial group developed fairly well and grew into a basic sector group. Strong industrial bases and local demand facilitated the formation of motor vehicle manufacturing group, food processing and manufacturing group, textile sewing industrial group and construction group, which enjoyed some comparative advantages, but have not developed into basic sector groups yet. Because of Beijing's strong advantages in scientific research and technology, electronic and information technology industry and medical treatment, medicine and medical mechanical manufacturing industry have developed into basic sector groups respectively. Due to the strong intermediate demand and solid industrial bases, a special basic sector group has been made up by advanced services and some manufacturing industries such as papermaking paper products, printing record medium reproduction, stationery, education sports goods and furniture manufacturing. The developed basic sector groups will provide strong industrial support of economic functions in Beijing.