Research On The Economic Growth Effect Of Financial Opening

As China’s reform and opening up process continues to advance,China has continuously introduced measures to open up to the outside world.The opening up and cooperation have continued to deepen,and the pace of financial openness has become faster and faster.China’s financial open road has been groping forward and constantly forming an open road that conforms to the actual situation of the country.With the development of the respective trade pilot zones,the establishment of the Hainan Free Trade Port,the development plan of the Guangdong-Hong Kong-Macao Greater Bay Area and the establishment of the Foreign Investment Law,China’s financial opening has ushered in substantial progress.Therefore,it is an important issue to study the economic growth effect of financial openness and how China should open its finances quickly and steadily.This paper sorts out the theoretical basis of financial openness for economic growth,and believes that financial openness can promote macroeconomics by promoting the improvement of capital efficiency,the increase of domestic savings rate,the advancement of financial technology,the optimization of risk allocation,and the improvement of institutions.The role.However,due to the differences in domestic development,the premature financial liberalization of countries with weaker development will increase financial risks,which in turn will increase the possibility of financial crisis.Based on this theoretical basis,this paper uses the threshold regression model to study the panel data of fifteen Asia-Pacific economies from 1985 to 2017,analyzes the relationship between financial openness and economic growth,and evaluates the current state of China.The results show that the role of financial openness in economic growth is not a monotonic linear relationship.When financial development indicators are used as thresholds,the role of financial openness in economic growth has a double threshold: 0.3437 and 0.6897,making the relationship between financial openness and economic growth show strong inhibition,weak suppression,and strong promotion in these three stages.effect.When the national governance index is used as a threshold,the role of financial openness in economic growth has a threshold: 0.5568,which makes the financial opening show strong inhibition and weak promotion in these two stages.China is in a state where the national governance index is below the threshold and the financial development index is close to the second threshold.Based on the analysis of the threshold regression model,this paper uses Chinese practice to conduct case studies.Firstly,it summarizes and summarizes the process of China’s financial open development,and divides China’s financial open development process into four major stages according to important time nodes.Secondly,it analyzes the impact of China’s current low level of national governance and the lack of financial development leading to the economic growth effect of financial openness.It is elaborated through two aspects: current situation research and main performance.Then,it analyzes the development status of Shanghai,which is at the forefront of China’s financial openness,and concludes that whether it is the level of governance or the level of financial development,or the level of financial openness is far ahead of the national level.Based on the comprehensive evidence and case conclusions,this paper believes that the financial opening strategy of China’s pilot promotion and risk prevention is correct.In order to ensure the steady development of the economy,this paper puts forward appropriate suggestions: China needs to improve the level of national governance by standardizing the financial supervision system,improving domestic legal rules,resolutely cracking down on corruption,and improving government efficiency.By stabilizing the structure of the financial market,deepening marketoriented reforms,and promoting the diversified development of the banking industry,etc.,we will steadily promote the level of financial development;increase financial opening,promote the opening process in an orderly manner,comprehensively promote the nationalization of the renminbi,and adhere to the “introduction” and The combination of “going out” will enable China to achieve stable,higher-quality economic growth.