We present a microscopic theory of the fractional quantum Hall effect and its hierarchy structure on the basis of a Chern-Simons gauge theory. Our Hamiltonian contains a renormalized term (absolute value of alpha/m)absolute value of psi4 which plays important roles. It is shown field theoretically that the system of the planar electrons in a strong magnetic field yields a hierarchy of the fractional quantum Hall states, which are a condensed phase of the bosonized electrons and vortices. It is discussed in detail how the Coulomb interaction between electrons plays a crucial role in this phenomenon.