An Empirical Analysis Of The Impact Of Singapore's Financial Opening On Economic Growth

How to open the financial industry has always been the key link of China's opening up,and also the key content of financial system reform and innovation.After the 2017 US dollar summit,China has announced measures to expand its foreign equity in the banking,securities and insurance sectors.In 2018,the central bank announced a new round of financial opening schedule.At this stage,with the global economic integration and the new changes in the international financial situation,the role of financial openness has become increasingly prominent.First,the study concludes that there is an inverted U-shaped nonlinear relationship between financial openness and economic growth,and the final impact between the two is closely related to the country's development stage.It is then verified that Singapore's financial development level is the channel through which financial development affects economic growth.The impact of financial opening on economic growth can be explained by the level of financial development: only when financial development reaches a certain level,financial openness will have a significant impact on economic growth.Positive impact,on the contrary,financial openness may have an inhibitory effect on economic growth.At different stages of development,there may be a financial optimal openness that maximizes economic growth.Furthermore,through the LSTR model,the financial market in Singapore is analyzed in three different stages of development: development,maturity and maturity,with financial development as the key conversion variable,and the non-linear variation of Singapore's financial opening effect on economic growth.During the period of 1970-1983 and 1999-2016,the non-linear effects of financial openness and financial development on economic growth changed significantly,and openness was more likely to have a negative effect on its economic growth.During the period1984-1998,the appropriate financial development rate in the Singapore market maintained a positive effect of good financial openness on economic growth.Therefore,the effect of financial openness on economic growth depends on the level of financial development.When financial development is at a suitable level,the positive effect of current financial opening on economic growth is higher;when financial development exceeds a certain level,the current financial opening is open to economic growth.The utility will diminish and the negative impact will offset its positive effect on economic growth.Finally,because China is different from the free market advocated by the West,it is a government-led market like Singapore.Therefore,the Singapore experience has a strong reference for China.The successful experience of Singapore in building an international financial center under the leadership of the government is inseparable from the state's policy of actively encouraging the development of the financial industry,which has important reference significance for China's financial openness.In the process of actually building a financial market,China should formulate a reasonable and gradual expansion of the financial openness policy,rationally and efficiently use foreign capital,adjust the investment structure,and improve the return on overseas investment,which will promote the better integration of China's financial market.International open financial system.In addition,the free port economic system of the entire country of Singapore can also provide a reference for China's construction of a free trade zone.Therefore,Singapore's development and transformation experience is worth learning.