A Study on the Influence of Opening the Financial Service Sector on Technology Innovation in Manufacturing Enterprises
- WU Lichao, ZHANG Xinyue & TONG Huanhuan
- WU Lichao (Xiamen University, 361005)ZHANG Xinyue (Guangdong University of Finance, 510521）TONG Huanhuan (Xiamen University, 361005)
With the rapid development of trade in services and increasing openness in the financial services sector, the financial services sector can directly provide support for enterprise technology innovation by providing quality financial services and external financing convenience, but still faces a lot of restrictions. This paper systematically studies the relationship between the openness of financial services sector and technology innovation. On the basis of theoretical analysis, this paper uses the World Bank Micro-Enterprise Survey Database and Service Trade Restrictions Database to analyze the influence of the financial services sector's openness on the manufacturing enterprises' technology innovation activities. Considering the characteristics of the industry, we found that the innovation activities of enterprises with high dependence on external financing are influenced further by the financial services sectors openness, and a more open financial services sector will promote the innovation activities of these enterprises. Our research confirms that the financing pressure mitigation effect is the main channel for an open financial services sector to affect corporate technology innovation activities.
JEL: F14, F65, O31
- Financial Service Sector's Openness, Technology Innovation, External Financing Demand