Research On The Effect Of Regional Industrial Structure Optimization In Interregional Trade: Theoretical Analysis And Empirical Tests

Since the reform and reform and opening-up policy, China's economy has accelerated into the wave of the internationalization of the world economy, quickly moving into a trading power. at the same time, the economy is depending on the external world increasingly, affecting the optimization and upgrading of industrial structure. In particular, the U.S. sub-prime crisis broke out, so that China's foreign trade had been heavily hit. For this reason, the Central Government swiftly brought forward the economic development policies—"to maintain growth, to expand domestic demand, to adjust the structure of industries", which was the greatest contribution to the world economy. It was China that has taken the most important and effective means in order to copy with the international financial crisis.In this context, the article explores the domestic inter-regional trade to promote regional industrial structure optimization, and to realize dynamic development interests of trade. In the theoretical analysis section, This article focuses on analyzing the mechanism that the inter-regional trade between the homogeneous and heterogeneous products to promote regional industrial structure optimization and upgrading. Subsequently, in the empirical tests section, this paper selects representative domestic automobile industry as a case. Meanwhile, this article selects the relevant system of statistical indicators to build time series regression model to quantity the effect which the domestic inter-regional trade boosts regional industrial structure optimization, confirming the long-term and stable linear correlation between the former and the latter. With the full and free development of the domestic inter-regional trade, Normalized Trade Balance of industry takes on ascendant trend, which means that regional industrial structure optimization constantly. At the end, this article sums up that the domestic inter-regional trade is the main driver of the regional industrial structure optimization.In brief, by expanding domestic demand, moderately decreasing degree of dependence upon foreign trade, making full use of advantages of large countries to cultivate self-supporting competitive industries, the regional industrial structure will be optimized in order to achieve rapid, balanced and stable macro-economic growth objectives.