Research On The Effect Of Hunan’s Openness On Economic Growth

Hunan’s foreign trade has always been one of the shortcomings of the economy of Hunan.With the acceleration of Hunan’s integration into the “Belt and Road” in recent years,the structure of foreign trade has been continuously optimized,but the degree of dependence on foreign trade is still low.The m ain reasons include the foreign trade structure with low value-added items.The overall opening lag,and engineering infrastructure and rail transit and other advantageous industries have insufficient capacity to develop international markets,but Hunan fi nancial institutions have great potential to support enterprises in carrying out international economic activities.Therefore,when studying the role of openness to Hunan’s economic growth,it is necessary to analyze the reasons of the financial support is sue.With the gradual acceleration of Hunan’s integration into the “Belt and Road”,strengthening financial support has become an inevitable choice to improve Hunan’s openness to the outside world.In view of this,I will on this paper firstly sort out the relevant domestic and international literature review,analyze the impact of foreign trade and FDI on economic growth,explore the theoretical connection between openness and economic growth,and elaborate the path of financing support and financial catal ytic function to directly and indirectly improve the level of opening up.Secondly,I will provide qualitative analysis of the status quo of Hunan’s opening to the outside world and the financial support problems behind it in the context of the “Belt and Road”.Thirdly,the Hunan Openness Index System will be constructed,and the national and Hunan data will be measured by principal component analysis.The cointegration test,VAR model,impulse response and variance decomposition are used to empirically tes t the relationship between two,and the financial support problems mentioned in Chapter 3 are also used to analyze the reasons why Hunan’s openness has weak influence on economic growth.Finally,combined with the importance of building a financial support system under the construction of “Belt and Road” and the current financial support problems in the process of opening up to the outside world,based on the perspective of financial support,it proposes countermeasures to improve Hunan’s opening to the outside world.The research results show that the role of finance is conducive to raising the level of opening up to the outside world.At present,the financial support for Hunan’s opening to the outside world needs to be improved.There are problems such as financing difficulties,insufficient comprehensive financial support of commercial banks,and insufficiently playing the leading role of open finance.These problems are parts of the important reasons for the low level of openness in Hunan Province;the indicators of openness are more vulnerable to the impact of the international financial crisis,and have been at a low level for a long time.The growth of the indicators in 2017 is due to the effective operation of the financial security mechanism;Hunan’s opening up to the outside world has a capital accumulation effect;due to the current low degree of openness to the outside world,the degree of openness to the economic growth of Hunan is weak,but in the long run,the increase in openness has a positive effect on Hunan’s economic growth.The effect is fluctuating and has a certain lag.Based on the above qualitative and quantitative analysis,this paper puts forward the following suggestions for financial support for Hunan to improve its openness: first,the funds should be inclined to the “Belt and Road” key areas;second,deepening the cooperation mechanism between enterprises and financial institutions;third,improving comprehensive financial support level of commercial banks;fourth,giving full play to the leading role of development finance;Fifth,strengthen export credit insurance for foreign-related enterprises.