The empirical analysis on the change of industrial structure and economic growth in China

Employing dynamic econometrical analysis methods, cointegration test and Granger Causality Test, this paper makes an empirical analysis on the change of industrial structure and OF economic growth in China from 1952 to 2004. The result shows that there exists Granger causality relation between fluctuation of industrial structure and economic growth in China, on one hand, the perfection of industrial structure will promote economic growth, and on the other hand, economic growth will also accelerate the perfection of industrial structure. In the course of research, it is obtained that although the economic growth in China is extremely fast, the industrial structure does not hold the same space as that of economic development. It is clearly shown that the labor transferring from the Primary industry to the Secondary industry and the Tertiary industry has lagged behind the speed of economic growth, which has confined the realization of modernization in China.