The Influence of Supply-Side Factors on the Upgrading of Chinas Industrial Structure

With the decline of China's demographic dividends, the accumulation of ?middle income trap? risk, marking China's economy began to enter a new stage. In the new economic normal, the focus of supply-side structure reform is how to solve the problem of excess capacity in China, low corporate profit margins, correct the mismatch of resources, in order to promote the upgrading of China's industrial structure. Based on the time series data from 1998 to 2015, this paper use unit root test and cointegration test to analyze the relationship between supply-side factors input and industrial structure upgrades, and on this basis, use Granger causality test for further study. The empirical results show that There is a one-way and positive correlation between the supply-side structure and the upgrading of the industrial structure. Finally, according to the empirical results, put forward some suggestions and recommendations about supply-side structure reform and upgrading industrial structure.