Abstract Based on the empirical model test,we come that internal economic imbalances are the roots of external imbalances.(1) The high proportion of secondary industry which is represented by trade department resulted in increasing trade surplus.(2) The income distribution imbalance lead to the decrease of the residents' income share and further insufficient domestic consumption demand and investment demand, which stimulate the formation of twin surplus.(3)The financial structure imbalance lead to high savings rate of enterprise, which prompted the twin surplus.Therefore,in order to adjust the external imbalances, industrial structure should be optimized and the residents’ income share be increased to expand domestic demand.Furthermore,financial market should be improved to realize the effective flow of domestic savings to investment.
2015, Vol. 32 
