The Empirical Research On Relationship Between Open Economy And Standardization

As traditional trade barriers and investment barriers between countries are gradually being broken, technical barriers has been becoming one common forms of the world to protect their own domestic market, international competition has entered a new stage. Faced with global economic integration and trade liberalization trends, every country push technical standardization work forward to the height of national strategy,leading international competition increasingly fierce. Our country’s standards level generally lag behind European countries and suffer from invisible technical barriers more and more in international trade and investment, however, the technical standardization provide an opportunity for turning our international competitive disadvantage. Therefore, promoting technical standardization has great significance for the development of international trade, foreign direct investment inflows and foreign direct investment outflows, and reversing the adverse situation of international competition.On the base of existing literature, as international trade, FDI inflows and FDI outflows can promote technical advancement and standardization effectively, meanwhile, technical standardization has become a valid form to avoid technical barriers to trade and investment, driving the development of trade, FDI inflows and FDI outflows, technical standardization has become a new perspective for the field of global competition. But the literature, mostly explore the relationship and interaction mechanism between technical standardization, international trade and FDI from the qualitative view, there are no quantitative examination of their relationship. This paper based on previous studies, researches the relationship and interaction mechanism between technical standardization and international trade, FDI inflows and FDI outflows, furthermore make an empirical test for their relationship.In the theory research, this paper analyzed the interaction mechanism between technical standardization and open economy from information asymmetries, network externalities, economies of scale and technical barriers. In empirical research,this paper respectively tested the long-short relationship between international trade and technical standardization, FDI inflows and technical standardization, FDI outflows and technical standardization, based on2000-2010inter provincial panel data, by the means of panel cointegration tests and error correct models tests. The results show that international trade and technical standardization, FDI inflows and technical standardization, FDI outflows and technical standardization has causality in the long term, development of international trade, FDI inflows and FDI outflows can both raise the level of technical standardization; the raising level of technical standardization can promote the development of international trade, FDI inflows and FDI outflows. But in the short term the causality between technical standardization and international trade, FDI inflows and FDI outflows isn’t found. Finally, this paper proposes some policy recommendations based on the theory research and empirical test, with the wish to help better participate in the global economic competition and actively push the strategy of technical standardization.