The Empirical Study On The Effect Of Standardization On Foreign Trade In Hunan Province

On the background of the globalization of world economics, the internationaltrade is becoming more and more complicated. Meanwhile, along with thedevelopment of advanced technology, the standard and standard activities havebecome the part of the trading countries and played an important role. In others words,the economics competition has already transformed into the standard competition, andthe standard has turned into an important symbol that could evaluate the economicsand technology level of a nation or a district. The relationship between the standardand the international trade has been concerned by many scholars and been researchedin depth. From the qualitative and quantitative point of view, the scholars drew aconclusion that the standard could push forward the development of internationaltrade by developing the products’ non-price advantage and promoting theintra-industry trade; however, the excessive strict stand sometimes may develop intothe technical trade barriers which hinder the development of international trade. Whenstudy the effect of standard on the international trade, the standard stocks are usuallyadopted to measure the standard level of a nation or a district, and linear or panelregression method are used in empirical analysis to support the theory research ofstandard.From the point of view the import and export trade both side, this paper analyzedthe Mechanism of the standard on trade. For exporters, the standard can promotetechnology innovation, increase trade, form of economy, expand intra-industry trade,improve product compatibility, and increase trade partner. For importers, it can solvethe standard information asymmetry to reduce transaction costs, enhance networkexternalities to expand user scale, and improve the whole social welfare. Based onfacts, this paper also introduced the status of Hunan standardization and foreign tradedevelopment, analyzed the cooperative development between Hunan standardizationand the foreign trade. Furthermore, from the point of view of the empirical analysis,this paper utilized several indexes to illustrate Hunan standardization developmentlevel. Using the principal component regression analysis and taking advantage ofrelated data from1989to2010, this paper made a empirical test of the effect ofstandardization on Hunan international trade. Finally, this paper drew a conclusionthat each index of Hunan standardization has a positive role in promoting Hunan foreign trade; Hunan enterprise standards, the national standards that Hunan hasinvolved in making and revising, and the patent stock have a greater influence onforeign trade; The standard research special funds, technology committee and localstandards on imported stock trade have more influence on foreign trade.Finally, combined with the current situation, theory and empirical analysisresults, this paper suggested that Hunan province should strength the standards’revision and implement and promote Hunan standards’ internationalization in orderfor Hunan province to upgrade its standard level and enhance the development offoreign trade ability.