Is there a way to create a hierarchical structure where a simple issue project can be housed in a project management project.
No. JIRA doesn't have that type of heirarchy. All projects are equal.
You could try the Structure add-on if you want something more complex than Category, Project, Issue, Sub-task. But I'd take a look at Portfolio - it doesn't really do what you describe here, but it does offer functionality which helps you work as though it did.
Can you give more context here? JIRA Projects out of the box can be "grouped" by setting a "Category" but that's about it. What are you trying to accomplish here?
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