Open Economy and Industry Structure Changing: Analysis on Zhejiang Province

On the basis of quantitative analysis of industrial development of Zhejiang province with the data of 1985-2009,this paper studies the impact of demand factors(such as export trade,domestic consumption) and supply factors(such as technology,capital input) on the industrial structural changing in the open economy,verifies the promoting role of open economy to the industrial structural changing in Zhejiang,tests the causality relationship between export trade FDI and development of heavy industry in Zhejiang,and thinks that the deep development of open economy is an important factor for the improvement of industrial level in Zhejiang,FDI introducing is a vital reason for the develop-ment of heavy industry in Zhejiang,and it exists bigger room for the transforma-tion of industrial structure in Zhejiang by way of RD and innovation,the poli-cies aiming at inducing the industrial structure transformation should be adjusted according to the actual situation.