A Study On The Influence Of The Foreign Trade Structure On The Industrial Structure In Jiangsu Province

The relationship between foreign trade structure and industrial structure is an important topic in international trade and industrial economics research field. Since the reform and opening-up, Jiangsu Province has made use of its geographical advantages to introduce large amount of foreign capitals and develop its foreign trade on a large scale. Thus, Jiangsu's trade scales have rapidly expanded and its foreign trade competence remarkably increased. The rapid development of the foreign trade brings about upgrading of its industrial structure. In such a special environment like Jiangsu Province, to study the relationship between foreign trade structure and industrial structure especially the influence of foreign trade structure on the industrial structure can help us to identify the important place of foreign trade structure in Jiangsu Province's economic growth, and provide theoretical and practical basis for the reform and establishment of foreign trade policy.This dissertation studies the relationship between the foreign trade structure and industrial structure in Jiangsu Province and the key research is put on the channel through which the foreign trade structure affects the industrial structure. First, the paper begins with the theory of the international trade ranging from the traditional comparative advantage theory to the strategic trade policy, summarizes the law about the industry evolution and the strategies that facilitate the industry development, and analyses the function channel and mechanism between the structure of foreign trade and industrial structure and the tendency and main characteristics of the change in foreign trade structure and industrial structure in Jiangsu Province from 1985 to 2005 within this theoretical frame. Second, based on Lan Qingxin(1999)'s structure index, the paper figures out the changing effect of the structure of foreign trade and industrial structure in Jiangsu Province from 1986 to 2005 and finds that the two structures have been in a improved situation all the time. The paper then makes an empirical study on the channel through which foreign trade structure affects the industrial structure by using the expanded endogenous economic growth model which includes both the export and import department. The empirical results discover that: from the point view of the comparative factor productivity, in the second industry, the primary export department promote its increase through enhancing its factor productivity in non-export sector, while in the third industry, the manufactural export department also promote its increase through enhancing its comparative factor productivity; in the spillover effect aspect, exports in the first and second industry, and import in the all three industries promote their increases by active spillover effect on non-trade sectors.Then based on the analysis above, the paper study further the characters of Jiangsu's economy and come to the conclusion that the three industries are affected by the trade structure to different extent; both import and export have significant promotion to Jiangsu's industrial structural change and its industrialization process, but the problems exsit in Jiangsu's processing trade bring about the lack of the spillover effect. At last, based on all the theoretical and empirical analysis above the paper proposes some policies and countermeasures to optimize foreign trade structure and industrial structure.