An Analysis Of China’s Financial Development Effect On The Comparative Advantage Of High-tech Products Export

Finance is the core of a modern economy, playing a key role not only in macroeconomic operation but also in microeconomic development. In recent years, the relationship between financial development and international trade has been a hot topic in economy theoretical research, and an attention focus of the practice. It is therefore of vital importance to research both in theory and practice the influence of China’s financial development on exporting comparative advantage of high-tech products.On the one hand, it will benefit expansion of the resource of the comparative advantage of international trade, improves the comparative advantage theory, and strengthens the relationship between financial development and international trade. On the other hand, it may find new solutions to increase exports of China’s high-tech products and improve its comparative advantage. Both of them can broaden the way of optimizing foreign trade structure and speeding up our country from a large trade country to a powerful one.The main function of finance is to absorb savings and transform them to investment effectively, it can increase the total amount of external financing of the entire economy, be helpful for high-tech products exporting enterprises to access more external financing so as to promote the total development of high-tech industry. Perfect Financial system and advanced financial system can avoid adverse selection and moral hazard problems caused by information asymmetry, and then this can reduce external financing costs of high-tech products exporting enterprises. The specific managing function of finance can help high technology exporting enterprise reduce, or even eliminate a series of trade risk during exporting, thereby increase exports of high-tech products. Advanced financial markets can effectively meet the demand of long-term stable capital needed by technical innovation; this can be helpful for high-tech enterprises’R&D and transforming them into realistic products. It can be seen that financial development promotes comparative advantage of high-tech products exporting through different ways. Based on reviewing previous research literature, in-depth analyzing the mechanism of financial development’s influence on exports of high-tech products, this paper analyses this problem empirically through different econometric models. Firstly adopts1991-2011time series data to analyze the co-integration relationship between financial development and high-tech products’exports in a national perspective, and furthermore uses panel data of27provinces during2002-2010to examine the influence of financial development on exporting comparative advantage of high-tech products, finally we draw a quite solid conclusion.From the co-integration analysis, we can find that there is a long-term stable relationship between China’s financial development and exporting comparative advantage of high-tech products, and the former is the reason for the latter. In the long run, financial development has a positive impact on exporting comparative advantage of high-tech products, but influences of different financial development aspects are quite different. Financial scale has the most obvious promoting function for exporting comparative advantage of high-tech products; financial efficiency also has a positive impact however not obvious, index of financial period has a negative impact. Based on panel data analysis in Chinese regional perspective, it can be found that different aspects of financial development play a positive role in promoting exporting comparative advantage of high-tech products. Influences of financial scale and financial structure are very significant; however the influence of financial efficiency is not significant. In addition, in other influence factors, inflow of FDI, advanced infrastructure, higher quality of talents and more input in R&D have a positive impact on promoting exporting comparative advantage of high-tech products.According to the theoretical analysis. and empirical test, China should insist financial reform and promote financial system. Release total amount of finance and at the same time optimize financial structure, especially strengthen pertinence and effectiveness of the credit. In addition, we should adhere to market direction in the reform so as to improve finance efficiency. And then we can promote exporting comparative advantage of high-tech products through financial development.