The Impact of Industrial Structure Changes on Economic Growth in Jiangxi Province, China

Abstract

China has transformed its industrial and economic structure since the start of the economic reform and the Open-door Policy. While modern cities are participating in this progress, less urbanized areas lagged behind these cities. This paper will attempt to explain this phenomenon by analyzing the impact of industrial structure optimization on economic growth by using a time series model from the data span of 1990 to 2018. This study shows that the modernization and rationalization of the industrial structure have a significant impact on economic growth, and the marginal effect of industrial modernization on economic growth is greater than the rationalization of the industrial structure. Furthermore, when the economic growth is slow, the low-level industrial structure can still maintain economic growth; but when the economic growth rate reaches a certain level, the low-level industrial structure will inhibit economic growth.