An Empirical Evolution of China's Industrial Structure Change : Based on the Network Analysis

This paper examines the evolution of industrial structure change of China in a long run from 2008 to 2020 based on the analysis of stock and sector networks. First, by analyzing the stock network of China, we find that stocks with great impact on the market usually belong to industries that are vulnerable to policies released by the Chinese government. Next, we introduce the impact elimination method of network analysis and compare the impact factor of sectors in sector networks of China, developing and developed markets. We find that the difference of impact factor between China and developed markets is smaller than that between China and developing markets for most sectors, implying that China's industrial structure is moving closer to the developed market and getting mature in the long run