Research On The Relationship Of The Opening And Regional Industrial Structure Adjustment In China

With the rapid development of the trend of economic globalization, opening up is proved to be an obbligato external factor which contributes to one country’s economic development. Then how does opening up affect China’s industrial restructuring? Does it have a significant impact on the the proportion relationship between industries within the industrial structure in a certain area or the competitive advantage in different regions in a specific industrial? This paper uses the method of shift-share analysis to decompose the effects of industry structure on economic growth into composition effects and competition effects for the sake of synthetically reflecting the proportion relationship of different productivity level (or importance) in the industry constructure and the difference in productivity which a specific industry shows owing to different regions factor endowments and technological conditions. On this basis, this paper discusses the effects of import and export trade、foreign direct investment and the structure of opening up on the optimization and upgrading of industrial structure and the competitiveness. Details are as follows:Firstly, we analyse the status of China’s import and export trade, foreign direct investment(FDI), and the composition effects and competition effects of regional industrial structure. On the whole, most of the import and export trade and foreign direct investment are concentrated in the eastern area, only a small part is distributed in the central and western regions. The compositon effects and competition effects of industrial structure have the similar distribution. Most of the provinces in the eastern part have higher compotition effects and competition effects, which are lower in the central and western provinces.Sencondly, this paper makes a study on the import and export trade on industrial restructuring. The estimated results of the national sample show that, import trade plays a positive role on the compositon effects and competition effects of industrial structure, and the effect on compositon effects is particularly significant. Increasing the export trade only improves the competition effects of industrial structure, however, the effect on compositon effects is not significant. Sub-regional estimates show that, the effects of import trade on composition effects and competition effects are both in descending order from east to west. The effect of export trade on compositon effects is significant in eastern region, but in central and western region is not significant. The effect of export trade on competition effects is significant in all regions and is in ascending order from east to west.Thirdly, this paper makes an empirical study of the impact of foreign direct investment on industrial structure of China. The estimated results of the national sample show that, FDI promotes the composition effects and competition effects of industrial structure significantly, and the effect on composition effects is more significant. That is to say that, FDI is not only good for regional industry to gain a competitive advantage in a short-term, but also more conductive to the optimization and upgrading of industrial structure in the long-term. Sub-regional estimates show that, there exist significant differences on the action pattern of FDI on China’s economic structure adjustment in different regions. The effects of FDI on composition effects are in descending order from east to west, and the effects on competition effects in ascending order from east to west.Fourthly, this paper analyses the effects of trade and FDI structure on industrial restructuring. The results show that, there exists an long-term cointegration relationship between import structure, export structure, FDI structure and compositon effects and competition effects of industrial structure. The panel data analysis shows that import trade structure plays a positive role on compositon effects and competition effects of industrial structure, but the effect is not very significant. Export trade structure has a significant positive effect on the composition effects and competition effects, in which the effects in eastern and central region are particularly significant. The FDI structure plays a significant and positive effect on the compositon effects and competition effects, but the effects are different in different regions of China.Based on the conclusions above, we put forward relevant policies and proposals to furtherly improve the level of opening up in order to promote industrial restructuring from the term of commodity import and export trade, attracting investment and opening structure.