Study On Economic Growth Effect Of Financial Openness Of Countries Along The "Belt And Road" From The Perspective Of Institutional

The fulfillment of the Belt and Road initiative relies on the development of policy coordination,facilities connectivity,unimpeded trade,financial integration and people-to-people bonds,where financial integration is the crucial foundation.The construction of financial integration is conducive to both the connectivity of infrastructure and the elimination of investment and trade barriers.However,difficulties and challenge of financial integration are increasing with the further progress of the Belt and Road,which puts forward new requirements for financial cooperation and financial openness of countries along the routes.In the context of the Belt and Road initiative,this paper focuses on financial openness and its influence on economic growth in the countries along the routes with the perspective of institutional quality.This paper can be divided into four primary parts.Chapter II is literature review,containing the connotation and measurement methods of financial openness,the inter-action between financial openness and economic growth and how institutional quality affects this interaction.In the third chapter,indicators measuring financial openness are built from perspectives of de facto and de jure.Meanwhile,the paper estimates insti-tutional quality by using the global governance index database(WGI).After calculating the data and indicators,this paper use descriptive statistics to analyze the differences and changes of financial openness and institutional quality of major regions and coun-tries,and to analyze the current situation and shortcomings of financial cooperation between China and countries along the line combined with relevant data.Chapter IV researches the question how institutional quality affects the interaction of financial openness and economic growth n the countries along the routes by econometrics model based on Neoclassical Growth Model In particular,this paper alleviates the endogenous problem through System-GMM estimation and applies ro-bustness test by grouping regression,adding independent variables and samples in empirical analysisThe conclusions of this paper are as followsFirstly,China has made a lot of achievements in financial cooperation with coun-tries along the Belt and Road at present.There are var ous kinds of cooperation in finan-cial institutions,monetary finance,capital markets,development finance,financial supervision and other fields.However,many deficiencies exist at the same time.For example,financial cooperation between countries and regions is obviously unbalanced,the breadth and depth of it are not sufficient and the risk factors are still numerousSecondly,the marginal effect of institutional quality on the growth effect of financial opening is positive.At the same time,institutional quality has a significant threshold effect on the growth effect of financial opening,that is,the opening of capital account won't have a positive effect on economic growth until institutional quality reaches a certain level.When institutional quality is lower than the threshold,financial openness will have a negative effect on economic growth.