Empirical Study on the Relationship Between Industrial Structure and Economic Growth

Abstract

Industrial structural changes include two aspects: rationalization and supererogation. In the "new normal" economy, these two aspects are increasingly the focus of government and theoretical circles. In order to research the interrelation among the rationalization, supererogation and economic growth, rationalization and supererogation of industrial should be measured. On the basis of constructing vector auto-regressive model, the mutual influences between these two industrial structure indicators and economic growth are analyzed. The research result shows the effect of rationalization is positive and remarkable, while the effect of supererogation is poor. Therefore, when formulating industrial policies, the government should vigorously promote the rationalization, and pay attention to coupling input and output structure. In addition, the supererogation and the transformation of industry-oriented structure into serviceoriented industrial structure should be promoted in a moderate way. Keywords—rationalization of industrial structure; supererogation of industrial structure; economic growth