The Dynamic Relationship between Trade Opening and China’s 
Industrial Transformation and Upgrading -- PVAR Analysis Based 
on Inter provincial Panel Data

Chaodong Yan

doi:10.18686/modern-management-forum.v6i10.5899

The Dynamic Relationship between Trade Opening and China’s Industrial Transformation and Upgrading -- PVAR Analysis Based on Inter provincial Panel Data

Chaodong Yan

Abstract

Based on the provincial panel data of China from 2003 to 2020, this paper uses the PVAR model to empirically study the
dynamic relationship between trade openness and industrial transformation and upgrading in China and the eastern, central and western
regions. The research fi nds that: at the national level, the negative impact of trade opening on industrial transformation and upgrading is
dominant; The industrial transformation and upgrading have promoted the trade opening in the short term, but the long-term impact is
inconsistent.

Keywords

open trade; Industrial transformation and upgrading; Dynamic relationship; PVAR model

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DOI: http://dx.doi.org/10.18686/modern-management-forum.v6i10.5899

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