A Empirical Study On Foreign Trade Promoting Industrial Structure’s Upgrading In Shanxi Province

The new thinking named “the Belt and Road Initiative” has been a national strategy. Shanxi which has the tradition of merchants relied on commercial trade and achieved her goal of being the richest in the world in the period without coal resource,industrial competitiveness and technological development. Nowadays, this is undoubtedly a great opportunity to develop for Shanxi Province which has been seeking industrial restructuring new economic growth point. In this paper, the research object is the relationship between foreign trade structure and industrial structure. We start from this and also expect to provide way and countermeasure for foreign trade and upgrading of industrial structure in Shanxi Province in the new development context.Research on the relationship between foreign trade structure and industrial structure has been a hot topic in economic sectors for a long time, and academia and industries have done a lot of research and practice. In existing research results, the quantity of this kind of research using a country as a research object is much larger than those using a little region. In this kind research of Shanxi, most of them is based on the gross. And the description of the structure of foreign trade doesn’t combine with the actual situation well in Shanxi Province. This paper makes use of existing customs gross data of major commodities in Shanxi Province, and selects 9 trade products which have more proportion in the trade of Shanxi, and integrates these products to 3 kinds by which this paper utilizes to calculate the data of foreign trade structure in Shanxi Province. Then this paper utilizes the panel data of11 cities in Shanxi quantifying the impact of foreign trade to the upgrading of industrial structure, which is the purpose of this article focusing on.The first part introduces the research background, significance, relevant literature review and research ideas, methods, primary innovation and insufficient. Then it introduces the theory of foreign trade, industrial structure and the mechanism of interaction of them. In the part of empirical analysis, first this paper quantifies foreign trade and industrial structure changes in Shanxi, and utilizes some methods, such as canonical correlation analysis and so on with the conclusion that the structural changes between the import and export trade structure and industrial structure is positive. Then the paper sets up an entity fixed effects model with the panel data of11 cities in 2004-2014 and researches the impact of foreign trade to the upgrading of industrial structure. Finally, the article makes the conclusion that Shanxi should combine with “the Belt and Road Initiative”, strengthen economic ties and exchanges with the outside areas starting from foreign trade in order to achieve its own upgrading of its industrial structure by creating trade channel and improving the quality of trade, strengthening the import of technology-intensive products and improving the technology of industry, intensifying efforts to attract investment and enhancing the level of capital accumulation, cultivating new industries actively and enhancing industrial vitality.