Research On The Impact Of Trade Openness On Resource Allocation Efficiency

Since the reform and opening up,especially after China’s accession to the WTO,China’s economy has developed rapidly,and the scale and level of foreign trade have been constantly improved.However,in recent years,as China enters the new normal,its economic development faces structural contradictions and resource bottlenecks,and the growth space continues to be compressed.China’s focus on the economy has shifted from pursuing the speed of economic growth to pursuing the quality of economic development.How to improve the efficiency of resource allocation has become an important issue in the process of improving the efficiency of China’s economic development.Then,what is the status quo of China’s trade openness and resource allocation efficiency? What is the connection between the two? And by what means?These questions are the focus of our research.This paper firstly reviews the literature from the aspects of the measurement and economic impact of trade openness,the measurement and influencing factors of resource allocation efficiency,and the relationship between trade openness and resource allocation efficiency to provide a solid theoretical background for subsequent research.Secondly,it introduces the current situation of China’s trade openness and resource allocation efficiency,and compares different cities to roughly grasp the trend and regional differences of China’s trade openness and resource allocation efficiency.At the same time,the influence mechanism of trade openness on urban resource allocation efficiency is introduced from three aspects of promoting factor flow,improving financial development level and upgrading industrial structure,which lays a foundation for the subsequent research.Thirdly,based on the panel data of 228 cities at prefecture level and above in China from 2005 to 2013,this paper conducts an empirical study on the relationship between trade openness and urban resource allocation efficiency,and uses the dummy variables of trade ports and the lag terms of trade openness as instrumental variables of trade openness to better solve the endogenous problems.In addition,the robustness tests are performed by substituting explanatory variables,adopting more stringent fixed effects and using LIML.The three intermediate mechanisms of promoting factor flow,improving financial development level and upgrading industrial structure are tested empirically.Finally,the city samples are grouped to analyze the heterogeneous impact of trade openness on the resource allocation efficiency of large cities and small and medium-sized cities.This paper mainly draws the following conclusions: First,compared with small and medium-sized cities,large cities are more open to trade and more efficient in resource allocation;Secondly,trade openness is one of the main reasons for improving the efficiency of resource allocation in China.Trade openness promotes the efficiency of urban resource allocation through promoting factor flow,improving the level of financial development and upgrading industrial structure.Finally,trade openness has a positive impact on the resource allocation efficiency of both large cities and small and medium-sized cities,and trade openness has a more obvious improvement effect on the resource allocation efficiency of large cities compared with small and medium-sized cities.According to the conclusion of the study,the following recommendations are made: First,continue to strengthen trade openness,optimize and upgrade the export structure;Secondly,the effectiveness of resource allocation and the imbalance of regional development should be fully considered to actively improve the efficiency of resource allocation in small and medium-sized cities.Finally,through upgrading the industrial structure,promoting the healthy development of the financial market and removing the obstacles of factor flow,favorable conditions can be created for the effective allocation of resources.