Opening Up And Institutional Transformation Of The Regional Economies-An Analysis At The Provincial Level

It has been 30 years since China launched the policy of reform and opening up.The market-oriented reform is accompanied by the expansion of opening up. Authoritative research revealed that economic opening is 'dual opening up' at the regional level to some extent, that is ,the parallel opening between inter-nationalization and inter-regionalization. This dual opening up is not only the important cause of regional development, but also the main cause of institutional transformation. The purpose of this article is to study the casuality between dual opening up and institutional transformation and the impact between them. This research will make theoretical significance and practical significance.The full test is based on combing the relevant researches about the relationship between institutional transformation and regional economic opening up.Firstly, we conclude the 30-year development course of inter-nationalization,inter-regionalization and institutional transformation from the initial conditions, the development process and the latest stage, and then sum up the history and characteristic indicators. Secondly, we conclude the connection and mechanism at the aspects of the labor, trade flows, capital flows between them.Finally, we make an empirical testing to explain the relationship between institutional transformation and dual opening up.The core propositon of empirical test is to study the relationship between dual opening up and institutional transformation. The empirical result of 31 provincial economy shows the increase of Non-state-owened components and the rise of capital goods price will play a role in promoting the process of dual opening up. The change of consumer subsistence price at the provincial level is not necessary getting positive results.The empirical analysis of two stage also strengths the above conclusion. Based on the above review, making the balance of dual opening up and institutional transformation and strengthening the adjustment of consumer subsistence price will be an important means of developing regional economies.