The Empirical Analysis Of Relationship Between Degree Of Openess To The Outside And Economic Growth In China

Since reform and opening up, under the guidance of China's expanding economic openness and the party's reform and opening up policies, we has accelerated economic restructuring and upgrading and bringed about economic "leap frog" development. Currently, the global acceleration of the process of economic integration, international capital and industry to China is accelerating, and development of an open economy is a important component in China's future economic development strategy for a long period. But the increase in exports and large inflows of foreign investment resulted China's international balance of payments "twin surplus" This, to a certain extent, will have an impact on china's economic development. Therefore, analysis the relation of China's opening up and economic growth has great significance to solve the "double surplus" ,expanding foreign trade ,optimize the trade structure, improve the use of foreign investment scale and quality,promote China's opening up and economic growth in a virtuous circle.On the research of the relation between opening up and economic growth, the most widely used at home and abroad is based on the C-D production function Solow residual value, however, they do not reflect all motives of the economic growth . Based on the study of improved methods and the reality of our country, we selected merchandise trade openness, the degree of liberalization of trade in services, the actual tariff rates, financial openness, the degree of liberalization of investment and production indicators to measure the openness of China's opening up, using factor analysis calculated that China's overall opening to the outside world; and using cointegration theory, causality test and error correction model method to analysis the relationship between China's reform and opening up to the outside world and economic growth, and drawing some valuable conclusions by the analysis.