The Relation Research Between Chinese Foreign Opening And Economic Growth

The level of opening to the outside world is not only an important index to a country's economy linked with the outside world, but also a characteristic of reflecting the level of economic development. In the international diversification of economy, industrial integration and globalization, the relationship between opening up and its own economy in all countries and regions becomes tighter and tighter. So it is very important to study the relations research between Chinese foreign opening and economic growth .Paper uses"level of trading liberalization"(including the trade liberalization of goods and services trade liberalization ratio),"level of financial liberalization"(including other investment and securities investment ratio open ratio),"level of investment liberalization"(including the opening up of China's foreign direct investment and the ratio of China's foreign direct investment ratio) three-level indicators, six two indicators, and the six indicators used principal component analysis of the methods to build a comprehensive index of opening to the outside world system, and then introduce our 1983-2005 year data on China's economic opening to the outside world the extent of the calculations and analysis in this study, based on the introduction of the econometric analysis of the expansion of the production function to establish the basis for econometric model, China's economic liberalization and economic growth of the relationship. The results show that: GDP will increase 0.31% with 1% increasing of level of opening up to the world. Calculations show that the level of trading liberalization is in a higher level and in the rising trend, the level of financial liberalization and the investment liberalization at a lower level and not significant. But later analysis shows the reasonableness of three indicators. In short, China's opening which is determined by its national conditions has their own characteristics and stage of development. Therefore, China should also develop appropriate strategy of opening up when moving toward a market-oriented path, it should also adapts the level of economic development through a complete set of domestic policies and institutional arrangements. Meanwhile, China's securities industry starts latterly with low opening degree, low amount of foreign investment, irrational investment structure. We should make Policies to develop the service industry vigorously; to deepen the reform of the financial system, to speed up the growth of China's financial market and to expand financial space and improve the level of financial services; to formulate an overall strategy of direct investment abroad, to improve its laws, to strengthen research of the international investment environment, to improve the innovation capacity of enterprises and development of core technologies and to improve the service system of foreign direct investment.