The Impact Study Of Jiangyin Economic Openness On The Industrial Structure Optimization

With the rapid development of the trend of economic globalization, open economy is proved to be an important factor which contributes to China’s economic growth. As the international industrial transfer speeds up and China’s participation in international division of labor deepens, open economy has become a crucial factor to promote industrial restructuring and upgrading of China. Located in China’s eastern coastal areas, Jiangyin takes the lead in County Economy with its solid industrial foundation and unique development model. However, in the background of new normal economy slowly developing, it has become a necessity to transform and upgrade the industrial structure. It is of great significance to promote the upgrading and optimization of the industrial structure, based on the research on how economic openness of Jiangyin affects the industrial structure optimization and upgrading.After summarizing the existing classical theory and research results, this thesis describes the realities of Jiangyin’s trade openness, international investing openness, openness of producing and industrial structure. In order to learn about the overall situation of Jiangyin’s economic openness and industrial structure optimization, the thesis creates a comprehensive index of economic openness and an index of measuring the degree of industrial structure optimization. Then the thesis analyzes the correlations between the economic openness and industrial structure optimization in a method of E-G co-integration test and error correction model. Besides, gray correlation degree analysis is used to further explore the contribution three aspects of economic openness have made to promote Jiangyin’s industrial structure optimization.The research shows that Jiangyin’s economic openness is developing in tortuous, influenced by the world economic fluctuations. Enhancing economic openness will significantly advance the upgrading and optimization of Jiangyin’s industrial structure, and this positive role in short time is greater than that in long time. The conclusion also indicates that industrial structure can achieve optimization on its own in a short time due to the endogenous inertia. The three aspects of economic openness and industrial structure optimization all show a strong relevance with each other, while the openness of producing shows the strongest relevance with industrial structure optimization, followed by international investment openness and trade openness. We can also see a downward trend in the positive effect economic openness has caused to Jiangyin’s industrial structure optimization.Based on the conclusions above, relevant policies and proposals such as introducing the advanced producing factors, expanding investment, and optimizing the structure of foreign trade are put forward to further improve the level of economic openness in order to promote Jiangyin’s industrial structure optimization.