Impact Analysis Of Economic Openness And Institution Of China’s Economic Growth Efficiency

Since1949, China has witnessed its great economy achievements. China’s GDP grows from67.9billion Yuan in1952to51.95trillion Yuan in2012, an average annual growth rate of GDP reached11%. Since the implementation of reform and open policy, Chinese economy has maintained rapid growth, China’s economic opening level has greatly improved, also. Achievements obtained in China’s economic growth should not be underestimated, but the existing problems should not be ignored, neither. China’s economic growth has two characteristics, that is its production development depends on the "high input, high pollution, low efficiency" mode and "high investment, high export, low consumption" demand pull. While in the process of economic development in the two "two high and one low" as the main feature, independent innovation and improvement of the efficiency of the elements has been neglected for a long time, technological progress or total factor productivity (Total Factor Productivity) to China economic contribution was small. This mainly rely on a large number of investment in physical capital, unskilled labor extensive economic expansion, will face serious constraints of resources and environment, lack of long-term economic growth. Therefore, this growth pattern has also been criticized by a lot of scholars as "not sustainable growth". At the same time, the deterioration of the ecological environment problems is arousing widespread concern, especially considering the resources and environmental constraints, the actual situation of our country economic growth actually how, become a hit research. This article tries to analysis China’s efficiency of economic growth with the binding of resources and environment, and how economic openness and institution affect the efficiency.This paper is divided into five chapters. The first chapter introduces the research background and significance, the framework of the thesis and innovation points may exist.The second chapter reviews related literature on the existing economic growth from the aspects of theoretical research and Empirical Study. The existing literature about Chinese economic growth efficiency is abundant, but rarely involved the resource and environmental constraints.In the third chapter, TFP of china was calculated based on the literature review of the potential output method. And it was decomposed by using potential output method. The overall economic growth showed a rising trend, but the average contribution of TFP to China’s economic growth rate is relatively low, China’s economic growth is still dependent on factor input. Secondly, introduce environment factors into the efficiency measurement framework, by calculating Environmental comprehensive index (ECI), an index about environment constraints. China’s efficiency of economic growth has increased in recent years; with more environmental protection has been taken. So certain achievements have been made to strengthen the ecological construction. Increasing environmental protection input reduces China economic growth in total factor productivity loss. Consider the environmental constraints, total factor productivity is mainly due to technological progress rather than technical efficiency.In fourth chapter, in order to reflect Chinese efficiency of economic growth more objectively and truly, based on the third chapter, the econometric model was used to analysis how economic analysis of open (import and export trade, FDI, financial openness) and economic institution (non-public degree, market openness, the degree of government intervention) affected the efficiency of China.The fifth chapter is the main conclusions and policy recommendations.