Study On The Upgrading Of Industrial Structure In China Under Open Conditions

With the deepening of economic globalization, the industrial structure is not only affacted by domestic resources, markets and technology and other factors, but also with changes of world economic development. Since the reform and opening up, China has adopted technology introduction, foreign trade, utilization of foreign capital and foreign direct investment and other channels, to a certain extent, they have promoted economic development and industrial structure optimization and upgrading.This paper first discusses the relationship between opening and upgrading of the industrial structure theory, including interaction mechanism between technology transfer, foreign trade, international direct investment and upgrade the industrial structure. And then elaborated the main channel which influence the China's industrial structure upgradeing. Including the effect of technology import in China and contribution to China's industrial upgrading. For the evolution of China's foreign trade structure, using econometric analysis software Eviews3.1 and using unit root test and cointegration analysis, establish co-integration and Error Correction Model, making Empirical analysis of foreign trade of China's contribution to upgrading the industrial structure. Analysing structure characteristic of foreign direct investment, Point out the mechanism that the International Direct Investment to China's industrial structural upgrading . On the basis of the theoretical analysis and practical summary , raise the further escalation of the industrial structure of China's strategic choice.First, the article sums up relations of the opening and upgrading the industrial structure. Technological progress and industrial upgrading exist mutually reinforcing positive feedback mechanism. Technological progress promote productivity gains and the development of social division of labor, and technology advances increase labor productivity and labor transfer, Leading changes of industrial structure. Foreign trade effect upgrading of the industrial structure by imports and exports. By importing elements of insufficient supply ,it can overcome the supply of "bottleneck" , promoting the optimization and upgrading of industrial structure. By optimizing the structure of export products to optimize resource allocation, it can direct more resources to the export industry, optimizing the industrial structure. Using foreign capital can make up for the country's "savings gap" and "foreign exchange gap, and through economic and technological spillovers effects, it create demonstration and catalytic role in promoting the upgrading of industrial structure. Foreign direct investment, mainly through three levels of the industrial structure changes to promote investment in the advancement and rationalization of industrial structure: Internal restructuring, with new production lines alter the original construction company; Intra-industry restructuring,investing to the original upstream or downstream sectors; Structural shift between industries, Existing enterprises will invest to the new industrial.Then with the changes of China's industrial structure since the reform and opening up,discussing the three main channels which impact of China's industrial structure to upgrade,concludethat: technological progress, foreign trade, foreign investment and foreign direct investment have played a positive role in upgrading China's industrial structure.Channel for technological progress: In recent years, China's technology import mainly include machinery, electronics, energy, transportation, information and chemical industry; the introduction of technology enhance the transportation, energy, raw materials and other areas of the national economy and national defense fields, and enhance their international competitiveness, stimulate the transformation of China's traditional industries, promoting industrial upgrading.Trade channel: With the continuous expansion of China's opening up, China's foreign trade in terms of scale or structure, have made remarkable progress. Whit the rapid development of foreign trade and foreign trade structure, our structure is also escalating.In 1978,the proportion of three industries were 28.19%,47.88%,23.94%,a higher proportion of primary industry, and by 2009, industrial structure is becoming more rational, the proportion of three industries were 10.6%,46.8%,42.6%, the proportion of the third industry has continuously increased.International direct investment channels: Since reform and opening , using foreign capital have solved our "funding gap" of country's economic construction,and alter China's industrial structure into the capital-intensive and technology-intensive industries. At the same time, China's foreign direct investment has continued to grow, to learn foreign advanced technology and management experience, playing technology "spillover effect" and the "demonstration effect" to promote the technological progress and independent innovation, promoting industrial upgrading.Finally, on the basis of theoretical analysis, point out that under the new situation and opening up a further escalation of China's industrial strategy. In the the new situation of global financial crisis, we should focus on "second innovation" after the technology introduction; address trade frictions, to create the world's brand; improve the investment environment in central and western regions, the transfer of the domestic industry should actively cooperate with the international industrial transfer; encourage a "learning" Foreign direct investment and so on. We should use the above measures, in order to facilitate further optimization and upgrading of industrial structure, promote China's sustained, rapid and healthy development.