Research On The Industry Structure Contribution To Economic Growth In Zhengzhou City

The upgrading of the industrial structure is an important feature of modern economy. Economic growth and industrial structure theory is always a hot issue in the economics research. Modern economic theory believes that industrial structure determines both the level of economic development and the trend of economic growth and in the mean time it is restricted by economic development level. Rational ajustment of industrial structure will greatly promote economic growth.For Zhengzhou, the research on how the industrial structure contributs to economic growth and how to adjust the industrial structure to achieve a new round of economic growth has important theoretical and practical significance.At first, this paper reviews the industrial structure and economic growth theories. Then it analyzes the industry structure change since the reform and opening up, especially from 1990, concludes that Zhengzhou "second, third, first" industrial structure, the second industry is stable, the third industry developed very fast. After the empirical analysis industry structure on economic growth, the paper use granger causality test to the causal relationships between industrial structure economy growths:the industry is reason for economic growth, but economic growth is not reasons the second industry structure adjustment. Then the co integration test analysises the relationgship flexibility between the industry structure and economic growth, on the long-term the second industry and the third industry flexibility on economic growths very big, the backbone of economic growth is obvious. The first industry has no obvious economies of scale. Based on the above research, it suggests nowadays Zhengzhou should promote industrial structure adjustment to increase the economic development. Finally, this paper puts forward a few suggestions on how to ajust the industrial structure.