Author(s)

Rui Peng, Zhaoyang Wang

Corresponding Author

Rui Peng

Abstract

This paper takes Hubei Province as the research object and evaluates the transformation of Hubei's economic development mode, of which 22 indicators are selected from 2005 to 2017 in terms of economic development level, social development level and scientific and technological development level. By using principal component analysis, this paper could analyze the influence of foreign trade structure on the transformation of Hubei's economic development mode. Then, with the help of Johansen co-integration analysis and error correction model, the data from 2000 to 2017 are selected to analyze the influencing factors of Hubei's foreign trade structure change, and the long-term equilibrium relationship between them is established. The results show that the foreign trade structure of Hubei province has a significant impact on the transformation of its economic development mode, especially on the structure of major exporters. And the main problem about the foreign trade structure lies in the slow development of processing trade and insufficient investment in private enterprises. Finally, the corresponding countermeasures are put forward.

Keywords

Transformation of economic development mode, Foreign trade structure, Principal component analysis, Johansen co-integration analysis