Relationship Between Economic Openness And Economic Growth

With the further development of our open and reform policy,the relations between domestic and international economy is closer and closer,accompanied by long-term growth of our economy,and then the research on the relationship between openness and economic growth becomes an important part of the reason why economy can sustain long-term growth. On this background,this article tries to analyse the relation between growth and openness of china from 1985 to 2009 in order to explain the influence between those two variables.Firstly,this article analyses and classifies the present references into four categories:some related to mesuring the economy openness,some related to the research methods of openness and growth,some related to the relationship between openness and growth,others related to the foreign literatures.And it pointing out the deficiencies and merits of those literatures.Secondly,this essay sorts out the theory about the openness impacting on economical growth so that the empirical model has theoretical basis.Thirdly,through measuring the degree of openness in china's 1985-2005,this article finds that all of the international openness on trade,as well as on finance and investment,s increasing greatly after our country joined in the World Trade Organization(WTO) in 2001.they also are severely affected by the international economical crisis broken out in 2007.So dose the economy openness comprised of the three indicators.Finally,using the threshold cointegration model to analyse the relations between the China's economical growth and openness,the article concludes that regardless of the input factor,such as capital and labor,the economy openness is non-symmetric ajusted to the growth.Meanwhile the marginal productivity of input factor in the sector of international trade,international finance,international investment,s well as all related to the economy openness,is higher than any other sectors and can promote the economical growth in long run.