An Empirical Study on Industrial Homogeneity between Fujian and Taiwan Provinces by the Coefficient of Similarity and R/S

Industrial homogeneity is one of the bottlenecks in industrial upgrading with a region and in the cooperation among different regions. This paper tries contributing to the understanding of this issue, and Fujian and Taiwan are chosen as case studies. By using the coefficient of similarity, the paper first analyses the present situation and changes of the industrial structure(as a whole), the manufacturing industry and the tertiary industry. and then forecasts the trend of future development of industrial homogeneity of the two regions through R/S method in the fractal theory. The results shows that industrial homogeneity between these two regions is significant, and if the industrial development continues under the existing circumstances, the level of industrial homogeneity will continue to increase, that of the manufacturing industry will continue to rise in fluctuation, while that of the tertiary industry will decrease slowly. At the same time, the industrial homogeneity indicates that the division of labour between Fujian and Taiwan tends to transform from a vertical-division one to a horizontal-division one.