Analysis on the impact of openness and market size on economic growth

Existing research on the relationship of trade openness and economic growth is increasingly serious challenged by the reality of Chinese economic development. At the same time, compared to the United States, Chinese trade openness has brought some adverse effects to Chinese macro economy, such as rising prices, trade imbalance, trade frictions and RMB appreciation. Openness and market size on economic growth is alternative. We make the empirical analysis on the impact of openness and market size on economic growth and concluded that for the provinces or regions of high trade openness, growth rate of trade should continue should not be higher than the rate of economic growth to maintain or reduce the degree of openness; For other provinces where the openness of the is still far away from the critical openness, they can continue to improve the way of the opening rate, and promote economic growth.