A Study On The Role Of International Trade Openness In Economic Growth

The relationship of trade openness and economic growth is an important subject of economics field.With the development of information and transportation technology as well as economic integration and globalization,the relationship between economic development of all countries and external factors has been more and more closed since the latter half of the 20 th century.In the view of many countries' development experiences,opening-up is a "double-edged sword",which not only brings with development opportunities,but also provides serious challenges.On the one hand,trade openness can bring vital development opportunities to the growth of economic development level,the optimization and adjustment to industrial structure,employment and welfare level for countries;on the other hand,it also strengthens their economic dependency to external factors,which means that the domestic industry may be under more competitive pressure and get into the trouble of market occupancy,the risk of economic operation can be also growing at the same time.There is a similar performance in the process of China's economic development.So what are the differences between trade openness and economic development of the whole world especially China?What is the relationship and internal influence mechanism between them?Whether trade openness has different influence among countries and regions with different development degree?The study about above questions can provide effective foundation for“trade promote development”,as well as bring positive support for how to grasp the trend of global economic development.On the basis of conclusion and comparative analysis of previous research theories,this paper established the econometric model which reflects the influences of trade openness on economic growth.The model uses cross-national data of WDI data system and cross-regional data within China of??????data system,quantitatively measures the openness of each country and each area within China,and systematically investigates the influence of trade openness on economic growth on the background of globalization.Based on the study,the paper put forward feasible policy suggestion.The article consists of 6 chapters: Chapter one states the international context,meaning of the subject,briefly introduces the arrangement of text structure,and summarizes the innovation in article;The second chapter is the theoretical collating and literature review,based on summing up the classical theory,which classifies and summarizes the existing literature aiming at transnational empirical analysis and empirical analysis of Chinese data in order to clarifies the context of previous research result,sums up achievements and shortcomings of existing studies,lights the road for this paper study;The third part deeply analysis the realities of trade openness and economic growth,based on the international statistics,and make a comparative analysis on the overall development of the world situation and China's development.The development of internal trade openness of our region is discussed in detail.It elaborated statistical correlation between trade openness and economic growth,and made a foundation for empirical analysis to verify the internal relevance of both them.The fourth and fifth chapters are the core parts of this paper,based on the classic theory of economic growth,introduces trade liberalization factors to Cobb-Douglas production function in the past.Each of them makes an empirical analysis about the influence of trade openness on economic growth,which were based on 1960-2013 cross-national data from WDI database and China statistical yearbook database,explores the path that how trade openness impact economic growth,and examines the different impact by distinguishing sub-sample to get more detailed analysis conclusion;The last Chapter concludes that it provides a theoretical basis and reasonable proposals about how to make the best of the positive influence of trade openness on economic growth,and looks forward to the future research directions.Through theoretical and empirical analysis,this paper draws the following conclusions: Overall,trade openness has a significant promotion effect on economic growth based on the analysis of cross-national data indicate.After distinguishing the goods and services trade openness,we found that the former one has the more obvious effects on economic growth while the latter one has negative impacts.This mainly due to services trade differ from traditional commodity trade,its effect on the human capital accumulation and technical progress of economic growth is small,so it is difficult to achieve the purpose of promoting economic growth by stimulating domestic aggregate supply.In distinguishing the degree of development of the national sample,we found that trade openness in developed countries has much greater effect on economic growth than in developing countries.From the sample analysis sub-period point of view,with the advancement of time,the promotion of the trade openness on economic growth presents a continuously strengthen tendency and acceleration of goods trade openness continues to weaken while the promotion of services trade openness continues to improve.Standing on the whole,the study based on Chinese data found that trade openness has significant positive impacts on economic growth in provinces.From the time-share sample analysis,the positive effect of trade openness on economic growth is more significant in the recent historical period.Analysis of samples from the sub-regional perspective,the pulling effect of trade openness on economic growth in the eastern region was significantly higher than the central and west regions.In addition,trade openness has “positive threshold effect” on economic growth,which means that the promotion effect of trade openness on regional economic growth would be more fully exploited and reflected,after trade openness in the region got a certain extent.