The Research On Financial Openness And Its Effect On Social Welfare

Since the 1980's,the trend of economic globalization is developing rapidly.Financial openness continued to deepen,and economic growth rapidly,and the level of people's social welfare improving unceasingly.Financial openness is an important means for government to promote economic growth,to improve the level of social welfare.Reasonable financial openness can promote the allocation of resources more optimization,it plays an important role in promoting economic growth and improving the level of social welfare.The scale of financial openness problem has attracted great attention of scholars both at home and abroad,however,the previous scholars mainly from the perspective of economic growth to research the financial openness problems,but economic growth can not bring the level of social welfare improvement synchronization.Such as environmental pollution,resource overexploitation and consumption,the gap between rich and poor widens,which can reduce residents'social welfare.With the development of economy,the level of income grows rapidly,but the problems of the social and economic have a negative effect on social welfare.In view of the social welfare to research financial openness,it is not only a new perspective of financial openness,but also a new development of the welfare economics research,and has important significance in theory and practical.The paper is based on the evaluation of related financial openness and social welfare,constructing financial openness and social welfare indicators what suitable for our country's actual situation,using annual data of China's financial openness and social welfare indicators to empirical calculation.Comparing with the real GDP per capita,it is concluded that the growth rate of real GDP per capita is larger,but social welfare index is relatively small.We can find the high-speed economic growth does not make the social welfare index improve synchronously.With the rapid development of economy,there are a series of social and environmental problems,and they have a negative impact on social welfare.So,it is inappropriate to use the growth rate of real GDP per capita to reflect the change of the social welfare level.This paper mainly research financial openness and its effect on social welfare index.Construct econometric model and use the data of financial openness and social welfare of China to empirical analysis.It is concluded that there has a nonlinear effect on social welfare index and financial openness.Financial openness is a double-edged sword,which can promote economic growth and improve the level of residents' social welfare,it also can bring risk,reduce the social welfare.Finally,based on the results of the empirical analysis,this paper puts forward five following suggestions to optimize the financial openness:Firstly,the government should gradual and moderate to promote financial openness,as far as possible to reduce the negative influence what the financial openness brings;Secondly,improve the ability of technological transformation and accumulation of capital to promote economic growth and improve the level of social welfare;Thirdly,expand the investors investment channels through developing our country's financial capital market,reduce the investment's risk;Fourth,improve the relevant laws and regulations,and establish the regulatory of financial risk and early warning mechanism,and improve the ability to response the financial risk;lastly,reduce the loss caused by the financial risk through establishing the social welfare security system.