Research On The Impact Of Capital Account Opening On Economic Growth

According to the new development strategy of China’s economy,it is required to accelerate the opening of the capital account to achieve the global allocation of resources,thereby increasing the labor productivity of all factors.However,China is currently in a critical period of economic transformation.Whether it can promote economic growth through capital account opening is the focus of academic discussion,but it has not reached a unified conclusion.Existing studies have shown that the relationship between the two is not a simple promotion or inhibition.There are many influencing factors in the process,especially the level of financial development,which cannot be ignored.However,few articles took it as the focus to regulate systematic analysis on its mechanism.Starting from the perspective of financial development level,this article analyzes the economic effects of capital account opening in detail from the theoretical and empirical aspects,theoretically analyzes the regulatory mechanism of various aspects of financial development and puts forward hypotheses.The proposed hypothesis was tested and a conclusion was reached.The analysis process of this article provides a new perspective for the analysis of the impact of capital account opening on economic growth;the conclusion of this article provides a good reference for current and future financial policy thinking.The author of this article combed and summarized the domestic and foreign literature on the impact of capital account opening on economic growth,the impact of financial development on economic growth,and the interaction of the three,and extracted the mechanism of action as the theoretical basis for the study of this article,based on the previous literature.Data and empirical methods sort out the basic context of the research in this article.From the four aspects of financial development:the degree of perfection of the financial market,interest rate system,money supply and the level of financial intermediaries,theoretical analysis of its mechanism of positive effects on the economy in the process of capital account opening.The main reason is the increase in capital stock within the country.Under the premise that the current savings rate remains unchanged,the increase in total savings has expanded the country’s investment level,market interest rate changes have expanded,and adjustments have become more flexible,which will ultimately promote the mature development of the financial market and further improve financial The degree of symmetry of information mastered by market participants can reduce hidden risks and other related effects.This article establishes an econometric model based on the previous analysis,and verifies the relationship between the three in market development through data collection,sorting,analysis,and related assumptions in this article.Conclusions are drawn through empirical analysis:First,capital account opening can promote economic development through cumulative effects,technology transfer,competition effects,imitation effects,and supply chain effects.Second,there is an inverted U-shaped relationship between capital account liberalization and economic growth.The opening of the capital account presents a non-linear relationship with economic growth,and depending on the level of financial development,the direction of influence is different.The level of financial development plays a role as a threshold,and there is an optimal range of action.Based on this,corresponding policy recommendations have been put forward to promote China’s economic growth,such as the balanced promotion of financial liberalization and financial supervision,the orderly promotion of capital account opening,and the promotion of the construction of legal and regulatory systems.