Empirical Study On The Relationship Between The Economic Openness And Economic Growth Of Hebei Province

In today’s economic development, the economy of each country is intercmm-unication. The previous theory and practice has proved that if the economy of one country want to be health and rapid development, close the country to international and excessive opening is impracticable, the key is to grasp the degree. Those years, our country establish the policy of opening to the outside world actively, the economic growth is obvious. Because of this, the Party Central Committee, the State Council has always to implement the policy of opening up as a competitive strategy, the opening up and economic growth has given new historical mission. Due to the recent economic crisis, we need to understand the level of economic growth of Hebei province and the degree of openness, and the relation between the two. In this social background, studying the relationship of economic openness and economic growth appears particularly important.In this paper, we propose the method of time series to analysis the relationship between economic openness and growth, and according to the actual characteristics of Hebei province, we has developed a set of evaluation index system about the degree of economic openness. At the same time, we draw the theory of foreign trade and foreign direct investment and the evaluation index of the degree of dependence on foreign trade, the degree of dependence on foreign capital, and the foreign economic and technological cooperation degree to construct the state space models. Based on the model, we do a empirical study on the relationship of economic openness and economic growth, and do a quantitative research about the influence of economic openness on the economic growth. The results show that the promotion role on economic growth of foreign trade, foreign capital and foreign economic and technological cooperation is particularly remarkable, and looked from the present situation, the effect will be significant in the long run. In addition, this paper analyzes the problems existing in the process of opening up and we put forward corresponding countermeasures and suggestions. The empirical study shows that this model can be used as an effective analysis tool to evaluate the relationship of economic openness and economic growth in the local government and research results and suggestions can provide useful reference when local government formulate the policy of opening up.