A Research On The Impact Of Financial Development On The Complexity Of Export Of High Tech Industry

In 2015, the growth rate of added value of High-Tech Industry of China is over 10%, which is twice the whole industry. In the same year, Chinese government has deployed and implemented Plan of Made in China 2025, devoting to the transformation and upgrading of manufacturing industry. Represented by high-end manufacturing, High-Tech Industry is undergoing rapid expansion. Following this trend, the research about export of High-Tech Industry is increasing. Highly dependent on outer financing, High-Tech Industry has a special need for financial intermediaries. Current studies rarely notice that the lagged financial development has become one of the key factors, which restrain the growth of export of High-Tech Industry. Not being the accurate representative of international competition ability, available researches still mostly use trade exports as dependent variables to analyze export of High-Tech Industry. This article selected export sophistication index of High-Tech Industry to evaluate the competiveness of export of High-Tech products.Based on the measure method of export sophistication designed by Hausmann (2005), this article calculated the export sophistication of High-Tech Industry of each province from 2000 to 2014. According to the results, nationally, the average of export sophistication of High-Tech Industry improves year by year from 2000 to 2014; regionally, the gap of export sophistication among regions is huge. The export sophistication of eastern province is the highest.Meanwhile, on the one side, based upon financial functional theory, this study inquired the direct effect of financial development on export sophistication of High-Tech Industry; on the other side, according to the theory Alfaro proposed, we built three indirect channels of financial development on the exports sophistication:spillovers from FDI, capital allocation, and human capital accumulation. In the above framed foundation, we conducted empirical analysis nationally and cross-regionally on four dimensions:scale of credit market, efficiency of credit market, volume of stock market, and efficiency of stock market.This study made clear that as one of the factor endowment, financial development is the principal element which has an influence on export sophistication of High-Tech Industry. The regression indicted that financial development significantly promotes the export sophistication of High-Tech Industry through the stock market. While to the credit market, the direct effect of finance to High-Tech Industry is not obvious, which is realized through the route of human capital accumulation and technological innovation.Due to the imbalance of economy and finance development regionally and the difference of the uncertainty of productive process of High-Tech Industry, there is an distinct discrepancy of promotion effect of export sophistication of High-Tech Industry in different regions caused by financial development. Financial market scale (scale of credit market, and size of the development of stock market) and financial efficiency index (efficiency of credit market and development of stock market) have a remarkable influence on export sophistication of High-Tech Industry in eastern and western parts.Based on the above results of analysis, we suggest that we need to promote the healthy development of capital market. Then more attention should be paid to the development of financial efficiency. The relevant departments should project the distribution of financial source in different regions rationally,...