Trade Openness,Financial Marketization And Urban Innovation Capacity

With the development of the economy from high-speed to high-quality,the capital-driven economic growth mode has gradually weakened,and innovation-driven economic growth has become a social consensus.As the basic unit directly participating in economic activities,the city is the main engine of regional and national development and it is the main gathering place of innovation factors.Its position in the country is becoming more and more important.To a certain extent,the urban innovation capacity represents the country innovation level.As an important way of international technology spillovers,trade openness has been concerned by the academia widely.Scholars have discussed their impact on regional innovation from different perspectives.The improvement of urban innovation capacity is a long-term process,which is not only affected by its own endowment variables,but also by the external environment.Innovative projects are subject to financing constraints due to their large investment in the early stage?long income period and so on,and many scholars have proved that the reform and improvement of financial marketization can alleviate the problem of corporate financing constraints.Therefore,the reform and improvement of external financial marketization plays a crucial role in the developing of regional innovation.The existing researches about city innovation capacity focus on the impact of urban endowment variables on urban innovation.And few researches consider the impact of financial marketization reform on urban innovation capacity.In addition,the existing research on the relative progress of China's financial marketization reform has only reached the provincial level in the data,causing data stratification problems.Nested data does not meet the general assumptions of traditional estimation methods,so the data stratification is also a problem that must be considered in research.Based on the shortcomings of existing research,this paper believes that in studying the impact of trade openness on urban innovation capability,in addition to focusing on factors such as trade openness and urban endowment,the key external factors of financial marketization should also be considered.The main contents of this paper are as follows: Firstly,according to the research purpose,improving the Chen Bangqiang financial marketization index,constructing a revised finance marketization index,and then measuring the relatively process of China's provincial financial marketization quantitatively.Secondly,using the Jaffe knowledge production function to establish the basic theoretical model.Then using the panel data of 259 cities from 2009 to 2016 to discuss the impact of trade openness,financial marketization and the combined effect of the two on urban innovation capability from the theoretical and empirical perspectives.The empirical results show that trade openness and financial marketization have a significant role in promoting urban innovation capability.Trade openness and financial marketization also have a certain joint promotion effect on urban innovation capability.In areas with high degree of financial marketization,trade openness has a stronger role in promoting urban innovation capabilities.In areas with high trade openness,financial marketization also has a stronger impact on urban innovation capabilities.In addition,according to the regional and urban types,the group regression shows that trade openness,financial marketization and the combined effect of the two have different effects on urban innovation ability in different regions and types of cities.