The Empirical Analysis Of The Relationship Between Economic Growth And Economic Openness In Liaoning Province

In today’s globalization wave of economic,the countries’ relationship are gettingcloser after joining into the WTO, China’s openness has entered onto a new stage.Either from theory or practice having proved that if a country or region want todevelop better, closure and opening too much are not excessive.They must be basedon their own economic situation to determine their economic openness "degree."Today, since the world economic crisis has just past, a new round of economicsituation, game is about to begin,China must continue to implement the basic nationalpolicy of openness, they give the provinces a new mission. Consider the accountrecent both international and domestic economic situation and the economiccharacteristics of Liaoning Province to search the economic openness and economicgrowth relationship.This paper starts from reviewing the research status and the meaning of theeconomic openness. According to Liaoning’s economic structure and characteristics,the indicators of economic openness are determined first: the degree of trade openness,degree of foreign capital dependence, degree of financial openness, the actual tariffrates and degree of production openness. Then use the data of1995-2010introductionof Liaoning Province and cluster analysis to exclud less relevant extraneous indicators(degree of openness of foreign dependence and production) from these five indicators,and then use principal component analysis to set the economic development degree ofmeasurement system. Based on this study, a econometric model is set up, and therelationship between economic openness and economic growth of Liaoning Provinceis regression analysised. The results show that: every degree of economic opennessincrease by1percentage, GDP increase of2.038percentage, that is, the degree ofeconomic openness of Liaoning Province, can greatly improve economic growth, andthe trade has inhibiting effect on economic growth, financial openness on economicgrowth plays a catalytic role, and the lower actual tariff rate, the more economicgrowth. In addition, for Liaoning Province, its economic opening is decided by theeconomic situation, it has its own characteristics and development stage,. So ifLiaoning wants to set up its openness policy,it should be considered their economicdevelopment level. This paper analyzes the problems during the process of economic openness and put forward corresponding countermeasures, speed up the openness,optimizing the openness’ structure, deepen the financial system reform, the rationalintroduction of foreign investment, encourage labor working abroad and inducehuman and capital, hoping that can serve as a place Government chose a reasonabledegree of economic openness and develop appropriate policy reference.