Analysis On The Effects Of Foreign Trade To Industrial Structure

This article does fundamental research and empirical analysis on the effects of the foreign trade to industrial structure to comprehend the importance of foreign trade and understand the in-depth relation between trade and the economical development.First, it analyses the principle between foreign trade and industrial structure and the rationale that foreign trade how to effect industrial structure systematically. The foreign trade impelling the promotion and development of industrial structure is from two aspects of supplies and demands through strengthening accumulation of capital, speeding up technology advancement and so on.Next, taking Gansu and Zhejiang as the object of study, using econometric analysis methods such as Granger Causality Test, cointegration, error correct model and generalized different regression, the paper gives an empirical analysis on the effects of the foreign trade to industrial structure. And the conclusions are as follows :No matter for a long-term or a short-term, concerning Zhejiang Province, the foreign trade has obviously the promoting action to the industrial structure, but the foreign trade does not have the obvious effects actually to Gansu Province's industrial structure.Then it analyses the reason why the effect of foreign trade to Gansu industrial structure was not remarkable: The quantity of foreign trade is too small and the development is at the non-steady state for a long time; The unreasonable trade structure comes apart the local pillar industry structure; Import-export trade condition (favorable balance during all previous years) contradicts the actual need of local economy development.Finally, it gives some suggestions to develop the foreign trade and promote the industry structure for Gansu and other western province that are not developed.