Research On The Coordination Of Trade Policy And Industrial Policy From The Perspective Of Structure

In order to achieve rapid and stable economic growth, promote the upgradingof industrial structure and form export advantage, China needs to develop anappropriate industrial policy and trade policy to guide and achieve policy goals. Inthe process of policy formulation, trade policy and industrial policy coordination arethe foundation to guide the government's rapid economic development and make thestructure of healthy and stable. But the difficulty is hard to grasp the interactionbetween policies which develop a coordinated trade policy and industrial policy.Research of policy coordination based on structure perspective, is the study ofthe coordination of the two structures, which are trade and industrial structures.Under the structure perspective, the goal to coordinate trade policy and industrialpolicy is the benign interaction of trade structure and industrial structure.By examining the evolution of China's trade structure and industrial structurefrom1980to2012, there are many problems in the development of the industrialstructure and the trade structure of China, and the lack of coordination betweentrade structure and industrial structure.The trade structure is quantified by usingSITC classification, and the industrial structure is quantified by using threeindustrial classification.Based on China's trade data and production data from1980to2012, the effect of the changes in import structure(ISCE), the effect of changes inthe export structure(ESCE) and the effect of changes in the organizationalstructure(OSCE) are calculated. By using the classical regression analysis, delayanalysis, Granger causality test and vector auto regression analysis, the interactionbetween ISCE, ESCE and OSCE are analysed, and there is a conclusion that ISCE isthe Granger cause of OSCE and OSCE is the Granger cause of ESCE.After a clear relationship between ISCE, ESCE and OSCE, there is an effectivereference to make coordinational policies for trade and industrial. This shows thatChina should make trade policy to develop high-tech products to attract imports andpromote exports of capital and technology-intensive, and industrial policy toencourage innovation and improve the quality.