| Economic openness is a integrated indicator to measure a country's economy, which reflects a country's economic opening to the outside world, and indicate the degree of exchange of a country. It incorporates the manner, extent and price to enter the markets, and to what degree a country allows others to participate in its economy. Thus the study on the degree of economic openness is essentially a study of the degree of economic internationalization.How to measure the economic openness is a very difficult problem. Different ways of measurement have been presented by domestic and foreign scholars in recent years .Traditional measurement of economic openness indicators generally take international finance, international trade and international investment as the major parameters. But to accurately reflect a country's economic openness, it is preferable that all external economic aspects be take into consideration, since if we would explain the most comprehensive concept of a country's economy, we need more comprehensive indicators. In this paper, a comprehensive overview was summed up on the content and measurement of economic openness, and the differences of and relationships among those methods have been analysed. And it also points out a further research direction on the basis of the former analysis and conclusions. Trade openness, parameters of the effective tariff rate, financial openness, investment openness, production openness and service trade openness have been chosen to build models employing factor analysis China's. Based on the research results in recent years economic openness indicators from1985 to 2004 have been calculated. After that, the relationship between economic openness and economic growth has been discussed and suggestions on how to enhance China's economic opening are presented. |
