Hunan Province Foreign Trade Structure And Industrial Structure: An Empirical Study Of Interactive Relationship

In an open economy, the coordinated development between internal economy and external economy of a country or region is the important guarantee of stable and healthy development. In any internal economy, the development stage of industrial structure directly determines the economic strength; While in any external economy, structure of foreign trade mainly reflects the position of international division of labor and industrial competence. So what the mutual relationship between the two structures is and how to coordinate them in order to promote economic development of a country or region have become key issues to be solved. During reform and opening up, the economy and foreign trade of Hunan province has achieved a rapid development. At the same time, the problems and contradictions between foreign trade and industrial structure have drawn extensive attention. Adjustment and optimizing the foreign trade and industrial structure have become an important topic. Therefore, clear and definite the mutual relationship between the two structures and their interactive relationship is imperative.This dissertation reviewed the related theories of foreign trade and industrial structure, looked into the mutual relationship and interactive relationship between them. Then, according to related data of industrial structure and foreign trade of Hunan province in1980-2009, it analysised and overviewed the evolution and development of industrial structure and foreign trade of Hunan province during30’s reform and opening up. On the basis of above research, we analysised the mutual relationship and interactive relationship between foreign trade and industrial structure by applying Eviews statistic software. On the one hand, according to three major industries, industries are divided into the primary industry, the secondary industry and the tertiary industry, and combining SITC and element classification, the composition of foreign trade is divided into resource-intensive production, labor-intensive production and capital-and technology-intensive production. Through establishing models, we analysised mutual relationship between structure of foreign trade and industrial structure. On the other hand, we analysised the relationship between structure change of foreign trade and industrial structure change, including influence trend analysis and influence degree analysis. Finally, on the basis of above theoretical and empirical study, we draw a conclusion. The development of foreign trade can promote the upgrading of industrial structure, but it just has little impact on secondary industry, at the same time, upgrading of industrial structure bring promotion effect to export structure but opposite effect to import structure. Structure of foreign trade is just the external cause of promoting industrial structure upgrading, but may not be the essence. In order to optimize the industrial structure fundamentally, we should do something on industrial structure itself.