Study On The Strategy Of Upgrading Of Shanghai's Industrial Structure

China's economic growth pattern is undergoing profound changes and expanding domestic demand will be the key line during the next five years, so it is necessary to upgrade the industrial structure to meet the economic development. As the leader of China's economy, Shanghai must put industrial restructuring in the first place so that it can give full play to the exemplary role of industrial upgrading.Based on the theory of industrial structure, this article analyzes the evolution of Shanghai industrial structure since the implementation of the policy of reform and opening up, and comes to the conclusion that Shanghai has initially established an industrial system which conforms to the characteristics of international metropolis development, but compared with other international cities, many problems exist in Shanghai's industrial structure, such as low level of service industry, strong environmental dependencies, insufficient industrial competitiveness, high energy consumption and so on. Then we discuss the international and domestic environment facing Shanghai and proposes the direction of Shanghai's industrial restructuring in which the service industry leads and the second industry exists side by side. Leading industry is the heart of industrial structure and leads the upgrading of industrial structure, so it is important to choose leading industry. This article builds up a sound indicator system for "the alternative of leading industry", through empirical analysis, we at last determines six industries as leading industry: Communications equipment, computers and other electronic equipment manufacturing, Transport equipment manufacturing, Business service industry, Wholesale and retail trade industry, Financial and insurance industries, Information transmission, computer service and software industries, all of them reflect the developing demands of advanced manufacturing and modern services. In the last part, we discuss factors affecting the development of leading industry by means of linear regression, and give some suggestions to development of leading industry according to the result of regression.We hope that the chosen six leading industries can promote the upgrading of Shanghai industrial structure, as far as the sustainable development of economy.