A Study On The Development Of Hi-tech Industry And Its Financial Effects

With the globalization and integration of world economy, economic competition among countries becomes increasingly fierce, with its focus turning from traditional elements of production such as land, labor and capital to talent, technology, information skill as well as the use of new and high technology industries. The rapid development of high technology has made great contribution to national, especially regional finance in terms of revenue and at the same time increasingly depends upon fiscal expenditure to fuel its further development. Based on the practical experience of ShenZhen, the author attempts to theorize on the interaction between hi-tech industrial development and public finance and make some policy recommendations.This research starts to from a reviews of modern economics and institutional studies as well as first-hand information collected from on -spot investigations, and employs various methods such as time series, quantitative and comparative analysis to show the development of high technology and its relation with public finance in developed countries and some advanced regions of our country. Then focusing on the case of ShenZhen this topic of its examined in some detail against the background of WTO.Though the comparison with other regions of the county, it is shown that the financial effect of hi-tech industry in Shenzhen is higher than the average level of the country as a whole. The local government of ShenZhen has played a very important role in regional development.Financial support is closely related with the development of industry and the whole economy.This paper analyzes the connection between financial support and industrial development, especially the upgrading of industrial structure.This is exactly what ShenZhen local government contributed to high-tech industrial development.The novelty of this research to the literature includes the following aspects. Firstly, this research adopted a research method that relates the development of the hi-tech industry with the regional budget, It differs from the previous methods that have been employed in similar researches. Secondly, this research enriches the content of the literature by different the finance effect into direct and indirect effect. Finally, this research integrates qualitative investigation methods with quantitative analysis and thus makes a comprehensive study of the topic and leads to useful policy recommendations.