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| Analysis on the Development and Evolution of China’s Provincial Opening-up since the Reform and Opening to the Outside World |
| LU Zhi-guo1, PAN Feng2 |
1.College of Economics, Shenzhen University, Shenzhen, Guangdong, 518060;
2.College of Economics, Shanxi University of Finance and Economics, Taiyuan, Shanxi, 030006 |
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Abstract Based on the economic data of Chinese provinces from 1978 to 2015, we measure and analyze the historical performance and evolution of the opening-up degree of Chinese provinces. At the same time, by constructing econometric models, we empirically test the influence of five factors on China's provincial openness, such as economic development level, transport infrastructure level, market scale, government intervention in market and factor endowment level. It is found that in the past forty years since reform and opening up, in the process of China’s opening up, mandatory institutional changes intersect with induced institutional changes, and the government and the market are well integrated. In this process, due to the cumulative effect, the forerunners still maintain their superior position. The law of diminishing marginal effect exists in the transportation infrastructure, which is an important means to promote regional coordination and opening up. The influence of labor factors on the openness is gradually replaced by human capital factors. The impact of economic base conditions on China's opening to the outside world is highly unstable due to the disturbance of the international situation. These conclusions provide significant policy implication for the overall design of China’s opening up mechanism in the new era.
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Received: 03 December 2017
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2018, Vol. 35 
