An Empirical Study About The Effect Of Industrial Structure Optimization On Regional Economic Growth In Jiangsu Province

The Theory of Industrial Structure Optimization occupies a pivotal position in Industrial Economics. Industrial structure optimization consists of rationalization and supererogation in industrial structure, both of which are always receiving extensive attention both domestic and aboard. Furthermore, these two have played a positive role in improving economic growth, thus, studies concerning them seem meaningful in both practical and theoretical terms. With the advent of the era of economic crisis, China has gradually lost its traditional advantage in foreign trade dividends and demographic dividends. In the meanwhile, due to the continuous consumption in resources and natural environment, the traditional extensive mode of production seems hardly suit China’s future development mode any more. Thus, industrial structure optimization was put on the agenda, and the Chinese government has introduced relevant policies to support economic development as well as industrial structure optimization.Based on the previous studies, the paper makes a progress in establishing the measuring system of both supererogation and rationalization in industrial structure. Apart from this, the model of multiple regressions is used to analyze the regional economic development, which also includes the various influence factors affecting supererogation and rationalization in industrial structure. The paper draws three conclusions. First, by collecting the added value and the number of the employed of the three industries and adjusting the data by referring the base standard in 2000, the paper calculates both the industrial structure supererogation and rationalization. By observing the data, Jiangsu has kept a steady increasing trend on the whole. Second, by using multivariate liner regression, the paper makes an empirical study about the effect of both rationalization and supererogation industrial structure on regional economic growth in Jiangsu. The paper draws the conclusion that industrial structure supererogation positively affects regional economic growth more than the industrial structure rationalization does. However, the industrial structure has a time-lag effect. The industrial structure which lags two years has a negative effect on regional economic growth, while that lags one year has a positive effect. Third, based on the previous theoretical and empirical studies, the paper puts forward various suggestions like the guiding role of government, differential developing strategies for different areas, a combination of research and production, and technological innovations in traditional industries to improve the industrial structure optimization for better regional economic growth.