The Effects Of Financial Openness On China's Real And Fictitious Economic Growth

In recent years,under the background of deepening global economic integration,China has gradually accelerated the process of financial openness,which plays a very important role in economic growth.However,during the period of China's real and fictitious economic growth,there was a significant imbalance in development,and the trend of the economy was transforming the economy from real to fictitious.The subject of this paper is whether financial openness has led to differences in real economy and fictitious economic growth.This paper first sorts out the existing domestic and foreign research theories and literature,and tries to expound the existing relevant views on this topic.Secondly,this paper analyzes the impact mechanism of financial openness on the unbalanced development of physical and fictitious economic growth from the perspective of exchange rate,relative price of non-traded goods and direct impact.This paper selects China's provincial panel data from 2003 to 2016,and uses dynamic panel data model System GMM analysis method to study the dynamic effects of financial openness on real economy and fictitious economic growth.Further,in view of the imbalance of economic development in China and the degree of financial openness,in order to study whether there is regional difference in the impact of financial opening on the growth of the real economy and the fictitious economy,this paper also divides China into East,Central and Western regions.The data model System GMM analysis method was studied.The results show that financial openness is the reason for China's economy transforming the economy from real to fictitious,and it has increased the degree of transformation of the economy.The financial openness of the developed regions in the eastern and central area caused the imbalance between the real economy and the fictitious economy.The impact of financial openness in the western region on the two types of economic growth was not significant.On the basis of the research conclusions,the following policy recommendations are put forward: on the basis of balancing the development of the real economy and the fictitious economy,increasing two-way financial openness;the fundamental position of the real economy should be adhered to,and the real and fictitious economy should be optimized;The level of human capital should be improved;the extensive economic development model,which is based on material capital investment and laborintensive industries,should be transformed into an intensive mode that relies on scientific and technological progress,quality improvement of laborers and management innovation.