Dynamic Spatial Effect of Regional Economic Growth in China:A Trade Openness Perspective

Dynamic spatial econometrics is a novel research tool to study the spillover effect of trade openness on economic growth.By constructing a 1987-2011 inter-provincial dynamic spatial panel econometric model,this paper examines the dynamic spatial effects of trade openness on regional economic growth in China.The research results show that there is a significant positive spatial effect in China’ s regional economic growth,the controlling of which works to increase the regional economic growth as trade openness increases.Spatial heterogeneity is found,however,of the effect of trade openness on economy growth due to the differences in regional economic development levels,public infrastructure,human capital,technical ability and labor market conditions among central,western and estern regions of China.