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Modern power: opening up to promote the economic development of (a)

Author: WeiZhi From: www.yourpaper.net Posted: 2010-06-23 20:43:19 Read:
Abstract: This paper summarizes the effects of opening up to the outside world to promote the rapid development of China's national economy. Opening to the outside world, the introduction of the funds we need; introduction, learn, absorb and digest foreign science and technology, and on this basis, technology and innovation; also allows us to learn from foreign advanced management knowledge and experience, and modern enterprise system; zones, coastal open cities, Economic and Technological Development Zone, as well as border and inland open, forming a pattern of full liberalization in China, these open areas, and this pattern of opening, we endogenous new institutional mechanisms and new productivity growth point; factors of the economic growth, export processing trade, we will be hundreds of millions of surplus labor the disadvantage into abundant labor resources and comparative advantage. Aspects and content of such opening up 30 years, driven by strong an important part of China's rapid economic growth factors. And for opening up to the outside world one way or another, we need history, objective and consistent with the law, dynamic look. It should be noted that the interest of opening up to the outside world., For us as a nation, a developing country, far outweigh the disadvantages.
Key words: open to the public; closed-door policy; modernization; economic development
With the development of the world economy, regardless of whether a country is willing to economic globalization seem overwhelming. Historically, those who adapt to the national economy in the world division of labor, collaboration, cooperation, in its opening to the outside world interests; those who lock themselves in, the less the spillover effects of the world technological advances, you can not play to their comparative advantages, and can not be obtained in the global division of labor and collaboration of their legitimate interests. Of course, in the global economy, a country's economic strength, technology, among other factors determine the active and passive in the global division of labor. Opening to the outside world, actively participate in and respond to the globalization of the economy, should be each country's development strategy and tactics.
Comrade Deng Xiaoping, "We have summed up the historical experience, a long period of stagnation and backwardness is an important factor is the closed-door policy experience has shown that, behind closed doors on construction can not be successful, China's development is inseparable from the world, of course, like [1] the party such countries engage in construction, not on their own can not, on their own, this is called self-reliance. insist on self-reliance, opening to the outside world, absorbing foreign capital and technology to help our development. " and the country will be open to established as a basic national policy, from the introduction of foreign investment, the establishment of the Hong Kong Special Administrative Region (SAR) and the strategy of coastal open gradually implement the opening-up, a strong impetus to China's economic development.

, Allowing the growth effects of foreign capital inflows

The development economist after studies have shown that capital investment growth in the contribution to economic growth in developing countries than developed countries; growth of the efficiency of resource allocation contribution to economic growth in developed countries than in developing countries. Therefore, for lagging behind in developing countries, the improvement of the efficiency of resource allocation and technological progress as the core of economic growth is relatively small, and the increase in capital investment has become the most important source of economic growth.
The vicious cycle of poverty theory capital scarcity is hindering economic development in developing countries. In 1953, American economist R. Nexus in developed countries capital formation issues, "a book made, there is a supply and demand of developing countries in macroeconomic two loops. On the supply side, low-income means low savings capacity, low savings capacity caused by lack of capital formation, capital formation, productivity is difficult to improve the low productivity caused by low-income, again and again, so the formation of a loop. From the demand side, low-income means low purchasing power, low purchasing power of the investment lure, lure investment is difficult to improve the productivity, low productivity caused by low-income, again and again and form a loop. Two cycles influence each other, the economic situation can not be improved, economic growth is difficult. Vicious cycle of poverty has two meanings: (1) lack of capital caused by the low level of supply, but also resulted in a low level of demand, highlighting the capital in the elimination of economic stagnation and the special status of the promotion of economic growth. (2) the first cycle focused on the relationship between the capital stock, income and savings, second cycle focused market capacity, the relationship between income and investment. Linking two loops can be seen: even with investment lure, but also the lack of savings can be used for investment; same time, even with the savings, but also the lack of investment to lure enough to absorb the savings. Therefore, these two cycles are hard to break, the more difficult by the downward cycle into an upward cycle, the long-term poverty in developing countries, the situation is difficult to change the long-term economic stagnation. "Vicious circle of poverty on the development prospects of developing countries hold a rather pessimistic attitude [2]. China in 1978, if there is no reform and opening up and the introduction of foreign capital, there will the vicious cycle of poverty.
In 1978, the Chinese capital accumulation compared with the 96,259 million population scale, the scale of fixed assets and current assets all over, but 00 billion yuan, when the state-owned total assets of 3,273 billion, urban collective and people The Commune assets accounted for about 35% of the total assets. ) Capital accumulation per capita is only $ 520. After the reform and opening up, we get rid of the vicious cycle of poverty, thanks to the Chinese residents' high savings habits and government the ability to mobilize and concentrate its resources, a very important factor is the large-scale introduction of foreign capital, foreign direct investment to promote economic development.
Use and the introduction of foreign capital, China's direct economic role: on the one hand to provide external source of savings, so as to promote domestic investment. The net inflow of international capital for imported intermediate inputs, machinery and equipment and advanced technology, the introduction of foreign capital can achieve the effect of the double benefit. In 1979, the first joint venture - the birth of the Beijing Air Catering Co., Ltd., has opened up a new era of China's utilization of foreign investment. But the first five years, the scale of foreign direct investment is very limited, only more than 300 projects approved each year, the average annual amount of actual investment of less than 6 billion U.S. dollars. The course of reform and opening up significantly rewritten the record. 30 years, in order to make up for the lack of domestic capital, technology, equipment, management and talent, the use of foreign capital quickly into the expansion period, and foreign investment into expanding the field, the contribution is also rising. 1979-2007, China's actual use of foreign direct investment of $ 60.2 billion, $ 26.2 billion per year on average since 2002, the use of foreign capital has been living in the top three in the world. 2007, the actual use of foreign direct investment of $ 74.8 billion, $ 920 million in 1983, an average annual growth rate of 20.1%. On the other hand foreign means of payment (foreign exchange), thus ensuring imports. In late 1978, China's foreign exchange reserves of only $ 167 million, by the end of December 2008, the state foreign exchange reserves amounted to $ 1.95 trillion. And the introduction of foreign capital and long-term outcome is to accelerate the pace of economic development, the establishment of the domestic production sector, increasing income levels, the level of exports and the level of domestic savings. From the successful introduction of foreign capital in China, resulting in a wide range of economic effects: (1) due to the introduction of foreign capital construction of state-of-the-art technology in the industrial sector, the domestic economic structure gradually been successful transformation, laid the foundation for an alternative to traditional export products and increase exports. (2) With advanced technology and equipment increasing economies of scale became clear, reduce production costs and increase the competitiveness of Chinese products in the international market, indirectly stimulate exports. (3) the introduction of foreign investment, promote economic development, the increase in national income, causing the domestic per capita savings capacity, and the improvement of the state treasury's fiscal revenue will also improve the capacity of public savings, which the country as a whole the total level of savings tend to rise. The first, two aspects of the effect of increasing savings, reducing the beginning of China's reform and national economic savings gap.

Second, the introduction of technology and economic development

Technology is one of the most important factors in promoting economic development. Modern economic development proved that with the integration of the world economy, with the deepening of the industrial society, technological progress plays an increasingly important role in economic development, from a long-term span, competition in the world economy is no longer resources, capital, market and competition in the territory, but the technology competition. Thus, although in the early stage of development, the contribution of capital to economic growth is greater than the technical factors, but for China, the early days of the contempt of Science and Technology, neglect or even hostile to knowledge and intellectuals, technicians and experts as take the object of the white special "road criticism, China's science and technology is not only lagging far behind the developed countries, also lags behind some developing countries, to the latter part of the Cultural Revolution, technological progress contribution to the economic growth rate of only 4%. The rapid acceleration of technological progress, to ensure and promote the economic development has a very important significance. Second, the reform and opening up, with the process of economic development, capital contribution rate will gradually decline, and technical contribution to the growth rate will be rising, especially in energy conservation, adjusting the industrial structure, improve industrial competitiveness, and so, the contribution rate of technological progress on economic growth will increase.
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