The Influence Of Trade Openness On Government Scale

Facing the ever-fluctuating global economic situation,in order to cope with the rise of trade risks,such as economic insecurity and social disharmony,our government needs to give full play to its social and economic functions and provide more social security benefits and subsidies to make up for The profit-loss groups suffered from trade risks,stabilizing the economy and making government expenditures rationally allocated.On the theoretical level,the “compensation theory”: The increase in the size of government expenditure is compensated by external risks."Penalty theory" : The reduction in the size of government expenditure is due to the lack of efficiency of the department.The above two completely different mechanisms of action,whether trade liberalization is to raise or lower the scale of government expenditures,it is very important to systematically study the mechanism of trade liberalization on the scale of government expenditure in China.Especially during the critical period of China’s economic transformation,it is of important and far-reaching significance to thoroughly study the mechanisms of the two countries in relation to China’s national conditions,prevent external risks,and accelerate the reform of the market economy system.At the empirical level,three different models are used based on Chinese provincial panel data,and empirical studies are conducted from the overall and structural perspectives.According to the results of the analysis,it is concluded.Theconclusions include:(1)China’s trade liberalization has a positive impact on the scale of government expenditure,and the positive relationship between controlling per capita GDP,marketization index and other indicators still exists in line with the "compensation theory."(2)In the eastern and central and western regions of China,trade liberalization has a positive effect on the scale of government expenditure,but the influence of the central and western regions is even greater.Based on the above two levels,this article has targeted the following research implications: to give play to the comparative advantage of China’s foreign trade,to support the development of private foreign trade enterprises,to increase the level of productivity,to improve the trade structure,to increase the proportion of service trade,and to reduce the proportion of processing trade.We will unswervingly promote the marketization reforms in the central and western regions to avoid the waste of social resources and the loss of public welfare caused by vicious competition.