A Study On Foreign Economic Openness Impact On Industry Structure Optimization In Chongqing City

Under the background of global economic integration and international industry transfer, Chongqing City as the central city of the upper reaches of the Yangtze River,is an important "growth pole", "high ground" and "radiation source" of the national development strategy. Since becoming municipality, Chongqing city actively developing economic exchanges with external world, such as actively developing foreign trade and vigorously attract foreign investment, which will make the industrial structure continue to develop in the direction of high gradation.Through economic opening up to promote the optimization of industrial structure also the practical needs of country open economy development strategy, which plays an important role in promoting sustainable economic development.This paper study the correlation and influence between economic opening degree and industrial structure optimization in Chongqing city. Based on the summary of existing classical theory and research results, chosen 4 indicators which can reflect the development level of the open economy in Chongqing City and measured the foreign economic opening degree on the basis of the current situation of the 4 indicators. Then analysis the development status and internal structure of three industry and measure the optimization of industrial structure by selecting 11 indicators. Finally through the empirical analysis of the two comprehensive indicators to study the various aspects of influential effect.The results show that the opening degree of Chongqing city is increasing year by year, but it is still in a low level and easy to be affected by the world economic fluctuations. The overall industrial structure also showed a trend of continuous optimization. Through the establishment of vector auto regression model, impulseresponse analysis, co integration test and Granger causality test to research the effects between economic opening degree and industrial structure optimization, we find that the industrial structure of Chongqing itself have optimization inertia, but this optimization effect will fade away with time.In the short term, the opening degree of the foreign economy is beneficial to the optimization of the industrial structure, but it is not significant in the long term. According to the impulse response analysis, if an external shock is applied to the foreign economic openness, it will bring a positive impact on the optimization of the industrial structure. By Granger causal analysis, there is a one-way causal relationship between foreign economic openness and industrial structure optimization, which means foreign economic openness is the Granger reason of industrial structure optimization.Finally, according to the current situation analysis and the empirical results of two indicators combined with specific situation in Chongqing city put forward the specific recommendations, which mainly include: Giving full play to the policy advantages in Chongqing and further improve the foreign economic openness, actively developing foreign trade, increase the import and export of high-tech industry, focusing on the role of processing trade, pay special attention to the development of trade in services.Reasonable guide foreign capital flow to the key and difficult industry of Chongqing City in the process of economic development, such as guide foreign investment to the comprehensive agricultural development projects, actively develop modern agriculture,vigorously develop the high-tech industry, and use foreign investment to promote the development of service industry. At last stage investment patterns also should be taken to enhance the ability of enterprise endogenous optimization.