The Research On The Relationship Between Foreign Trade Structure And Industrial Structure Of Hunan Province

The structure of foreign trade and industrial structure are the hot issues in the economic area, and the relationship between the two is not only an important subject of international trade, but also an important area of industrial economics. The structure of foreign trade and industrial structure linked closely, and the structural changes of industry determine the structural changes of foreign trade, and the optimizing trade structure can contribute to the upgrading of industrial structure. The structural changes of industry of a country or region is directly determine the country or region's economic strength and development level, and the structure of foreign trade fully reflects the country or region's industrial competitiveness and status of the international division of labor. Therefore, the coordinated development between the structure of foreign trade and industrial structure has a very significant impact to a country or region's economic development, and is also an important guarantee for a country or region's economic stability and healthy development.This paper studies the relationship between Foreign Trade and industrial structure in Hunan Province from the structural Marxist perspective, focusing on the relationship between the structural changes of foreign trade and the structural changes of industry in Hunan Province and the way and mechanism of the interaction of foreign trade structure and industrial structure, and expand and deepen the understanding about trade and industrial development impacting on economic development at the regional level, and find a suitable path to catch up with developed areas for Hunan province's foreign trade development. This paper is divided into five parts:The first part is the introductory part. Firstly, it proposed the research background and significance, and introduced the idea of this research and the main content. Then it reviewed the related research literatures at home and abroad. In a country or region, the relationship between foreign trade structure and industrial structure manifested not only in the direct interaction of foreign trade structure and industrial structure, but also in the indirect link through the influence of the growth of a country's economy. Therefore, the review of research literatures is from two aspects:the direct relationship between industrial structure and foreign trade structure and the indirect relationship between the foreign trade structure and industrial structure. Lastly, it made a brief review about the research literatures, pointing out some deficiencies.The second part is the theoretical framework. This section hackles the theories of international trade and industrial structure, analyses the way and mechanism of interaction of foreign trade structure and industrial structure to construct a theoretical framework of relationship between the foreign trade structure and industrial structure, providing a theoretical basis for empirical analysis on the relationship between the structural changes of foreign trade and structural changes of industry in Hunan Province.The third part is a historical review of the evolution of Hunan Province's foreign trade structure and industrial structure. This section made a detailed qualitative and quantitative analysis about the evolution process of foreign trade structure and industrial structure in Hunan Province from 1985 to 2007. It illustrated the evolution of Hunan province's foreign trade structure mainly from three aspects:the overall situation of foreign trade, structural changes of exported goods and structural changes of imported goods, finding that Hunan Province's foreign trade structure has not yet discarded a low-level situation, and still remain in the labor-intensive stage. In the analysis of industrial structure, it illustrates the overall changes in industrial structure through the three installments industry, and summarizes trends and characteristics of the evolution through analyzing the internal structural changes of each industry:the three industrial structure in Hunan Province is gradually moving towards rationalization and advancement, but there are still a certain gap on the absolute level of output from the industry, as compared with the rest of the country.The fourth part is the empirical analysis. Firstly, it makes an empirical analysis on the relationship between the structural changes of foreign trade and structural changes of industry in Hunan Province from 1986 to 2007.The results demonstrate that the structural changes of industry is the Granger causality of the structural changes of export, and the structural changes of import is the Granger causality of the structural changes of industry. Secondly, it makes an empirical analysis on the relationship between trade factors and the structural changes of industry. The results indicate that there is a negative correlation between the export of primary goods and the proportion of primary industry, there is a negative correlation between the import of manufactured goods and the proportion of primary and second industries, there is a positive correlation between the import of primary goods and the proportion of tertiary industry. Thirdly, it makes an empirical analysis again the relationship between industrial factors and the structural changes of foreign trade. The results indicate that there is a negative correlation between the development of primary industry and the proportion of manufactured goods import, there is a negative correlation between the development of second industry and the proportion of manufactured goods export, a positive correlation between the development of second industry and the proportion of primary goods import, there is a positive correlation between the development of tertiary industry and the proportion of manufactured goods export and primary goods import, a negative correlation between the development of tertiary and the proportion of primary goods import.The fifth part is conclusion about the problems of foreign trade structure and industrial structure in Hunan Province and policy suggestion. The policy suggestions are put forward as followed:(1) perfect further Hunan province's economy system and create a good policy environment for the upgrading of foreign trade structure and industrial structure; (2) optimize the export goods structure, and strengthen the linkages between export sector and non-export sector; (3)according the needs of industrial development in the province optimize the import trade structure to improve the promoting effect of import goods structure on industrial structure; (4) enhance competitive advantage, optimizing industrial structure, and strengthen inter-industry linkages to achieve positive interaction of industrial structure and import and export commodity structure.