Abstract: The structure analysis method based on factors reallocation and industrial structure change helps to reveal the fundamental driving force and reasons for industrial development. Based on the cross-industry panel data of Gansu Province and China, this paper investigated the changing tendency of industrial structure in Gansu by calculating the structural changing scale and its capital-intensity. Besides, this paper tested and calculated the reallocation efficiency of labor and capital factors among industries by using the improved "Wurgler" model which could measure the sensitivity of the flow of production factors to total factor productivity. Finally, this paper analyzed a reliable path of industrial transition to upgrade in Gansu Province. Results show that from 2000 to 2013, industrial structure in China was adjusted from capital-intensive industries to labor-intensive industries, especially in some technology-intensive industries such as electronic and communication equipment manufacturing, transportation equipment manufacturing and electrical machinery manufacturing. But at the same time, the capital intensive tendency of Gansu industry was strengthened, labor factors flowed into the mineral resources and heavy chemical industry, such as coal mining, oil exploration, chemical materials and chemical products manufacturing. Gansu's regional special industry obtained a very good development, the aggregate capital stock per worker in industry constantly increased, and the agglomeration ability of factors was also continuously strengthened; but the scale-orientated factors allocation and industrial structure change had a negative effect on the productivity growth of the whole industry, the flow of factors to high productivity sectors was short of efficiency, some departments which lack of efficiency took up a lot of production resources, which in turn reduced the reallocation efficiency of production factors. Besides, the development of technology-intensive industries was unsatisfied, labor and capital factors flowed outward, and the scale of emerging industry has not yet been developed. On these grounds, suggestions are given as follows:firstly, the process of China's industrialization and factors reallocation showed the scale-orientated characteristics, and large-scale and state-owned enterprises obtained a more favorable environment for development. Therefore, to further adjust and optimize the industrial structure, the government should weaken its authority to allocate production resources and establish a multi-level capital market, so as to improve the efficiency of factors reallocation. Secondly, the paper have shown that Gansu's pillar industries had a good performance in production efficiency, then it is necessary to take advantage of this competitive industries and expand its industrial chain helps to improve the competitiveness of the traditional industry. Thirdly, some new technologies such as intelligent manufacturing and the internet of things was quietly changing industrial production process and way of development, industrial development strategy should timely adjust the direction and focus, increase investment in higher education and scientific research and develop the industrial technology degree.

Key words: Gansu Province, industrial structure, factors reallocation, the structural-bonus hypothesis, transformation and upgrading