Positive And Policy Study On Openning Economic In Central China

Since our country implemented the Western development strategy and the strategy of revitalizing the northeast, the central region economically backward revealed further probloms, which aroused government departments and the academic community's widespread concern. There are many reasons accounting for the backward of the economic development in the central region, among which, the lag behind the development of an opening economy is no doubt a very important reason.In 2006, the central region took up 26.8 percent of the nation's population and 20.5 percent of the GDP. However, the percentages of the central region's foreign trade and FDI to the national total were respectively 3.1% and 9.4%. The practice of many countries and China's eastern region show that the practice of opening economic development to promote economic growth plays an important role in many countries and regions; any countries or regions which are not actively integrating into the world economy, not fully sharing the interest that the international division of labor brings will not able to continue with their economy. Therefore, in the crucial moment, the Rise of Central China strategy has risen to national development strategies, regarding the opening economic development as a breakthrough of economic development, revealing a comprehensive laws and producing effective ways of the opening economic development of the central region undoubtedly is very significant.In this paper, issues of the central region's opening up economic development have been comprehensively, systematically and deeply studied. Firstly, on the basis of reviewing, sorting out and commmenting the theory of opening economic development, the author makes use of nearly 20 years of time-series data and comprehensively analysed the status and problems of the central region and opening up economic development status quo and then through a multi-variable regression model, co-integration analysis and Granger causality test, analyses mutual relations of foreign trade, FDI and economic growth of the central region. At the same time, By means of the construction of a multivariate regression model, the affecting factors of the central region of opening economic development are revealed, and from the aspects of advantages, disadvantages, challenges and opportunities , the reality of conditions of the opening up economic development of central region are elaborated. The last, on the basis of the study, from foreign trade, FDI and joint development of them, the proposals of opening economic development policy are put forward. The main conclusion of the study are as follows:(1) The paper analyses the main thesis of the opening economic develpoment in the central region. Analysis believes, international trade theory mainly includes the theory of comparative advantages and the theory of competitive advantage. Comparative advantage theory is based on the theory of competitive advantage, which stems from the comparative advantage theory and the theory of integration and development of it. the strategy of comparative advantages and competitive advantage which stem from international trade theory has strong reference with for the development of foreign trade in the central region. The theory of FDI has already formed an integrated system, and the theory of FDI absorption capacity originating from various FDI thoeris has enlightening significance to the use of FDI in the central region.(2) The paper analyses the status quo of the central region's opening economic development and compares it with the averge level of development in our country. Analysis believes that, despite the central region of foreign trade over the past 20 years has made fairly rapid development, but the scale of foreign trade is still too small, commodity structure irrational, the market too concentrated to a single trade, the main trade unreasonable, the county seat behind the development of foreign trade. FDI in the central region has also made some progress, but still there are issues of a small investment scale, single source of investment, the industry narrow of investment. The paper also make use of synthetical depending level and cluster analysis method, making a comparative analysis toward the 31 regions of China's opening up economic development, which draws a conclusion that the opening up economic development in central china is relatively fallen behind.(3) The papers analyses the mutual relationgship between the opening economic development and economic growth over the past 20 years. Analysis believes that there is a long-term equilibrium relationship between foreign trade and economic growth in the central region, the export trade improves economic growth, relatively speaking, the role that exports plays contributing to the economic growth is greater than import. But in the central region the causal relationship between export trade and economic growth does not exist, and economic growth is the Granger reason for the import trade while the import trade is not Granger reasons for the economic growth. The direct and indirect role of FDI plays on the economic growth in the central region is relatively small and there is not Granger causality between them.(4)The paper empirically analyses the relationship between the foreign trade and FDI of the central region. Analysis believes: FDI not only expands the scale of foreign trade, but will also help to optimize the structureof foreign trade of the central region; In the central region export trade, import trade or import and export trade in a certain role promote FDI. However, despite there is mutual relationship between foreign trade and FDI of the central region and there is also the only long-term co-integration, but the export trade and FDI has not causal relationship, and the import trade is not the Granger reason for FDI, but FDI is Granger reasons of import trade.(5)The paper empirically analyses the influencing factors of the opening economic development in the central region, meamwhile assesses the economic environment of the 31 regions of our country. The analysis says that the factors of export and import trade of central region vary considerably, and even can be said to be completely different: among the possible impact on foreign trade in the 8 factors, the terms of trade, import and social investment in fixed assets in the central exports trade has had a major impact, and the main affecting factors of the import trade in the central region are the exchange rate, GDP, FDI and human capital. Among the 10 factors which may affect FDI, labor, wage levels, the level of industrialization, foreign trade, the 4 factors on the central region have had an impact, while the other 6 factors did not play a due role. The factors affecting FDI in the central region orderly are labor factor, assembling factors, institutional factors and market factors. Paper also uses factor analysing method, making a comparative analysis of China's 31 regions of the opening economic development environment. Analysis believes that the environment difference of the opening economic development in China's 31 regions is the impertant reason which results in the difference of growth; and central regions of the opening economic development environment lie in the middle position, better than the western region, but worse than the eastern region.(6) This paper, from strengths, weaknesses, opportunities and challenges, the four areas analyses the favorable and unfavorable conditions of the opening up economic development in the central region. The analysis says that the opening up economic development in the central region has the central zone advantages, transport advantages, superiority in natural resources, labor cost advantage and human capital advantage, and there are also disavantages in these areas such as economic base, the level of industrial development, market development, urban construction and infrastructure. The world economy, the international trade, the international direct investment in the world, as well as the implementation of China's "Central China Strategy" bring opportunities to the central region, and at the same time the world's new resurgence of trade protectionism and the new trends of FDI development has made the development of an open economy facing severe challenges in the central region.(7) Based on the above study, as far as the development of central region opening economy, the paper puts forward relevant Countermeasures from foreign trade, FDI and joint development of them. This article holds that if the central region develop foreign trade, they must play a comparative advantage, foster competitive advantage, optimize the structure of export commodities; must develop export processing trade, increase the added value of export commodities. Efforts must be made to expand the market, promote the diversification of the export market strategy, we must deepen foreign trade system reform, actively cultivate diversified foreign trade business entity, actively develop county economy, and foster new growth in foreign trade; we must actively respond to the new trade protectionism, reduce the negative effects of trade protectionism. We must vigorously train personnel of international trade, improve the overall quality of management of foreign trade and economic cooperation. Only we continue to improve the investment environment, optimize the flow of foreign investment industries, foreign investment in innovative ways to develop enterprise mergers and acquisitions, expand sources of foreign capital, and strengthen the examination and approval of foreign investment introduction supervision, and improve the investment direction and actively seek the state's preferential policies and FDI in a reasonable guide, can we continue to improve the use of FDI scale and quality. At the same time, this paper believes, we can't split the development of foreign trade and FDI in the central regions, nor do we do our own in the six provinces, but should strengthen regional cooperation, take into account foreign trade and utilization of FDI in the development, and make efforts to promote the FDI and trade integration.