The Comparative Study Of Jiangsu And Guangdong Provinces About The Impact Of Foreign Trade On Upgrading Of Lndustiral Structure

Foreign trade and upgrading of industrial structure is always a hot topic in the field ofinternational economy and trade.Lots of scholars have made researches and discussions aboutit.But the study on the impact between the two is not a lot, especially on a comparativeanalysis between two provinces.With the intensification of economic integration and theimprovement of China’s opening up, there’s no doubt that foreign trade can develop fast.Jiangsu and Guangdong provinces’ total amout of foreign trade have always ranked the topfive，at the same time, almost always maintain double-digit percentage growth.The reformand opening up not only improves Jiangsu and Guangdong’s foreign trade development, butalso escalate the two provinces’ industrial structures.Industrial structures’ organizationchanges from “second first third” to “second third first”, and the gap between the second andthird industry is becoming more and more narrow. So study the function mechanism abouthow foreign trade influences the upgrading of industrial structure, trying to achieve thedevelopment of foreign trade in Jiangsu and Guangdong provinces, at the same time, drivingthe upgrading acceleration of industrial structure has a certain practical significance.This paper taking Jiangsu and Guangdong provinces as the study objects,makes acomparative study between the two provinces on the impact of foreign trade on the upgradingof industrial structure.This paper is mainly divided into three parts:the first part of this articlefirst analyzes the function mechanism of foreign trade on the upgrading of industrialstructure;Secondly,analyze the current foreign trade and upgrading of industrial structure’ssituation in Jiangsu and Guangdong provinces.In third part, we first compare two provinces’foreign trade and industrial sturctrue’s current situation. Then using the data about foreigntrade and industrial structure to set up time series model,from the empirical angel studyJiangsu and Guangdong provinces’ foreign trade’s impact on industrial structure.Study findsthat the foreign trade’s impact of the two provinces on upgrading of industrial structure isdifferent in the long and short terms. In the long term, foreign trade can promote Jiangsuprovince’s upgrading of industrial structure, but the impact of Guangdong province onupgrading of industrial structure is not obvious, and even shows a certain impediment. In theshort term, import can promote Jiangsu province’s upgrading of industrial structure, butJiangsu province’s export and Guangdong province’s foreign trade don’t influence upgradingof industrial structure.Based on the comparative study on Jiangsu and Guangdong provinces’foreign trade’s impact on industrial structure from the empirical angel,this paper furtherstudies the impact of foreign trade of the two provinces on three big industries,finds thatJiangsu and Guangdong provinces’foreign trade can contribute to the first industry’s transferand the second industry’s development, but hinder the development of the third industry.Jiangsu province’s foreign trade in promoting the transfer of the first industry and thedevelopment of the second industry is greater than the role played by Guangdong province,onthe inhibition of the third industry is less than Guangdong Province.The impact of foreigntrade on three industries is further good for analyzing the impact of foreign trade on theindustrial structure’s upgrading. According to the empirical results above, this paper analyzesthe reasons, founds that the unreasonable structure of foreign trade contributes to the firstindustry’s transfer and the second industry’s development, but hinder the development of thethird industry. Difference in the structure of foreign trade is the cause of the different effect onJiangsu and Guangdong Province influced by foreign trade.Difference in the structure offoreign trade between the two provinces is due to the difference in factor endowments, FDI,technology, policy and geographical arisingresults. Based the study above, this paper proposesreasonable and effective policy recommendations on the basis of the three parts’study.