Research On The Growth Effect Of Financial Openness From The Perspective Of Financial Development

In the 1980 s,developed countries began to implement the policy of financial openness and proved its positive effects on economic growth through their own successful practices.Since the 1990 s,emerging market countries have also begun to promote the process of financial opening.Financial openness is generally regarded by mainstream economists as a key step in the economic development process,and it has gradually been incorporated into economic and financial development strategies by various countries.China is currently in a new stage of accelerating financial opening,and General Secretary Xi emphasized at the 2018 Boao Forum for Asia that China will ensure that the announced major financial opening measures are implemented as soon as possible.However,further expansion of financial openness brings benefits while also hiding risks,and level of domestic financial development is the key factor for whether financial openness can exert more positive effects in the development of the national economy.Therefore,from the perspective of financial development,this article explores the heterogeneous impact of different financial development levels on the economic growth effect of financial openness,providing a reference for the smooth development of the current round of financial openness.This article first sorts out the logical relationship between financial openness and economic growth,and the mechanism of financial development affecting the growth effect of financial openness.Second,based on panel data from 57 sample countries from 1996 to 2017,an interactive effect model was used to test the interactive impact of financial openness and financial development on economic growth.Third,constructa non-dynamic panel threshold model to examine the threshold effect of financial openness on economic growth at different levels of financial development.Finally,introduce a coupling and coordination model to measure the degree of coupling between financial openness and financial development in various countries,and focuses on the coordinated development of China's financial openness and financial development.The main conclusions have obtained are as follows: The improvement of the level of financial development can reduce the phenomenon of inhibiting economic growth brought about by financial openness to a certain extent.Countries with higher levels of financial development can benefit more from financial openness.When the level of financial development is used as the threshold variable,financial openness has a significant threshold effect on economic growth,and when financial development of different dimensions is used as the threshold variable,the threshold effect of financial openness on economic growth is different.The change in the degree of coordination between the financial openness and financial development of various countries has obvious volatility and periodicity.In most developed countries,the coupling degree is relatively high,while the average coupling degree of the two systems in China is 0.403,which belongs to the "mildly imbalanced" country and still has a large room for improvement.Therefore,in the process of implementing the policy of financial openness,it is necessary to ensure that financial institutions are at a suitable level,and at the same time,also vigorously develop the scale of financial markets such as the stock market and bond market,and increase the conversion rate from savings to investment to improve the coupling and coordination between financial opening and financial development.Eventually,the positive economic growth effect of financial openness will be achieved to a greater extent.