Analysis On The Correlation Of Foreign Trade And Industrial Structure

Since the reform and opening up three decades, China's economic development has made remarkable achievements but also has some problems to be solved, how to transform the economic growth way from the extension to the intensive is the difficult position which the nation as well as the most districts face, becomes the focus of economic work in all levels of the government, the upgrading of industries becomes the bottleneck for further economic development. The purpose of this research is to seek the method to promote upgrading of industrial restructure from the perspective of trade. China is a big trading country, in recent years, the contribution of foreign trade to economic growth increased, becoming a major force driving economic growth. So the questions of whether trade and industrial relevance, is generated through what channels the mutual influence, through what means can both maintain a good relationship with each other are the main issues to be addressed in this paper.First of all, This article based on researching massive related literatures, and used international trade study and industrial economics' correlation theories showed that between the foreign trade and the industrial structure has the relevance. On the one hand ,the industrial structure determines the country's comparative advantage, comparative advantage determines its own import and export commodity structure; the other hand, foreign trade by changing the domestic supply and demand in turn affect the domestic allocation of resources ultimately affect the country's industrial structure. After analyzing the mechanism of action of the two, this article further pointed out that the sound development of foreign trade can promote industrial upgrading through its resource allocation function, but stick to the traditional comparative advantage would have a negative influence, through the allocation of resources to industries with low levels of the export sector and thus curing the existing low level of industrial structure, this phenomenon is that we should try to avoid.Secondly, this paper further test the correlation between the two by empirical analysis. In this paper, Ningbo City, as the research object. Ningbo is the economic center of the Southern wing of Yangtze River Delta. And the National, like most cities, the economic development of Ningbo, is also faced with the industrial structure optimization and upgrading. This paper selects the relevant data for years 1987-2008 Ningbo examined, evidence is divided into two parts, the first part test the relevance of Ningbo's foreign trade and the first, second, third industry. The second part test the relevance of Ningbo's foreign trade competitiveness and the degree of industrial structure changes. Through two empirical analysis confirms a more comprehensive and effective relationship between the two.Finally, on the basis of the analysis of Ningbo's status in foreign trade and industrial, in the view of the current problems in these two made a number of policy recommendations intended to establish smooth transmission mechanism between the foreign trade and industrial structure.