A Research On The Relationship Among Foreign Trade, Upgrading Of Industrial Structure And Economic Growth Of China

Since1978, the total amount and structure of China’s foreign trade haveundergone great changes. Foreign trade is continuously increasing and Trade opennessis also gradually increasing. At the same time, domestic industries output value andindustrial structure have undergone great changes too, output increasing and industrialstructure gradually to high-class development gradually. Foreign trade and industrialstructure are the important factors of economic development, and the relationshipbetween them is inseparable.The paper takes the mutual influence of foreign trade, upgrading of industrialstructure and economic growth between the three as the research object, and use themethod of combining theoretical analysis and empirical analysis. In reviewing the tradestructure, industrial structure upgrade and economic growth of the two relations on thebasis of literature review. First, the total foreign trade, development and current status oftrade and industrial structure upgrading of China’s reform and opening up for analysisare described. In the empirical analysis, using our country relevant macroeconomic datafrom1978to2012, from two angles of trade openness and trade structures changeanalysis of the relationship between foreign trade, upgrading of industrial structure andthe economic growth. Through the co-integration test, impulse response analysis andGranger Causality Test, draw the following analysis conclusions: China’s trade opennessand upgrading of industrial structure and economic growth, there is no long-runequilibrium relationship. Then there is a long-run equilibrium relationship existsbetween trade structure changes and the upgrading of industrial structure and economicgrowth, and the same time foreign trade and industrial structure upgrade can drive theeconomic growth of our country. The increasing of trade openness can help to improveChina’s industrial structure upgrading, thereby enhancing the structure of foreign tradeindex, thus promote the economic growth of our country.Finally, according to Article empirical conclusions put forward the correspondingpolicy recommendations: to further expand the opening to the outside world, optimizethe foreign trade commodity structure, vigorously promote foreign trade in services,efforts to enhance the competitiveness of foreign trade, and vigorously develophigh-tech products trade. Efforts to promote the first and second industries changetowards tertiary industries, but at the same time focusing on upgrading the industrial structure should be considered to the industrial structure is optimization and reasonable,accelerate the development of modern agriculture, improve the modern industry, butalso vigorously promote the services sector. In short, the improvement of our countrytrade openness, trade structure upgrade and the optimization and upgrading of industrialstructure will be the enduring power of our country’s economic growth.