earticle

영어

In recent years, upgrading of industrial structure receives much concern in China. The paper analyses the influence mechanism of financial development and two-way FDI on industrial restructuring at first and then gives an empirical study using Cointegration Test, Vector Error Correction Model (VEC Model) and Impulse Response on rationalization and advancement of industrial structure, using data of Shandong province from 1991 to 2014. The results show that there are long-term equilibrium relationships between the variables and the rationalization and advancement of industrial structure. VEC Model shows that, in the short term, the effect of the factors on the upgrading of industrial structure in Shandong province is not significant. The impulse response analysis shows that the variables have negative impact on the industrial structure rationalization and positive impact on the industrial structure advancement.