Capital Market Development And Entrepreneurs Resource Extension

Since the reform and opening up, China has made some achievements in economic reform, the division of labor at home and abroad keeps deepening. In the process of economic globalization, China’s economy achieving steady and sustainable growth, we must give full play to comparative advantages, to achieve dynamic evolution of them. Extends from the product market to factor markets is an important way to enhance China’s comparative advantage, and the capital markets due to the high efficiency of the transaction and the corresponding system security, is becoming an important part of the modern elements market. Recent research of capital market mainly focuses on how to promote the development of the capital market mechanism itself to improve the utilization of funds and capital markets play a role, but neglects the development of the capital market as a package for the optimal allocation of the main elements of the enterprise family resource development of major impact. What is the mechanism between the development of capital market and interactive resource development among entrepreneurs? Whether the interaction between the two can promote the evolution of Chinese dynamic comparative advantage? Answers to these questions are meaningful for China, who is in the period of economy transition, to gain an advantageous position in international division. It should be figure out that entrepreneur resource, as the main role to promote China’s division of deepening and upgrading of the main endowment structure, are important to the realization of expansion of market scale and the promotion of dynamic evolution of comparative advantage. The development of capital markets can not only promote the effective division of labor between entrepreneurial resources and other factors, but more importantly can make the entrepreneur resources division as separation of ownership and management of the enterprise from its own internal implementation, and thus accelerate the enterprise resource development in the bunk house and outside surfaces. Thus, with a gradual increase in continuous improvement and efficient capital market system, positive interaction between entrepreneur resource development and capital market development will be further enhanced. So it can promote China’s market economy continues to grow and promote the endogenous comparative advantage.Taking market expanding as a link between entrepreneurs expanding and the dynamic comparative advantage promoting This article describes the interaction mechanism between the two as " the evolution of division of labor productivityâ†'entrepreneur resource developmentâ†'a corresponding increase in transaction costs rising can be offset by the increase of productivityâ†'purchasing power increasesâ†'expand market sizeâ†'endogenous promote further deepening division of laborâ†'comparative advantage enhance." On the basis of in-depth analysis of the capital markets as an important way to promote the development of entrepreneurial resources, the operational mechanism of its own fits entrepreneurs’ element characteristics, and analyze the development of the capital markets mechanism to promote entrepreneurs resource development from the two aspects of incentives and constraints, and then raised:capital market development and expansion of entrepreneurial resources can effectively promote positive interaction to enhance the dynamic comparative advantage.In the empirical part of the paper, on the one hand, from the full time span of29provinces and cities in China,1993-2012panel data regression analysis was conducted to verify the interaction mechanism to promote capital market development and entrepreneurial resources to enhance the comparative advantage of China; on the other hand, as the external capital market system environment based on the nature of the changes, the investigated range of capital market development is divided into two stages, by introducing a dummy variable in the model further validates the capital market development and expansion of entrepreneurial resources interactive differences at different stages of development in the capital markets. The results showed that:(1) capital market development and expansion of entrepreneurial resources can effectively promote dynamic interaction to promote the expansion of market scale and comparative advantages;(2) in the better external market institutional environment, capital market development and interactive entrepreneur resource development to enhance the dynamic comparative advantage of generating more significant promoting effect.On the basis of empirical research, this article analyzes the important role played by the institutional environment between the development of capital markets and entrepreneurial resource expansion from the two dimensions of the incentives and constraints. By the analysis of the regional economy through diversity, the interaction mechanism of capital market development and expansion of entrepreneurial resources gets further validated. Studies have shown that: costs increasing in capital market transaction are the resistance of the process of entrepreneurs’ resources expanding, and capital market reforms lag is the crux of the high transaction costs in capital market. For this crux, this article brings a number of policy recommendations for how to reduce transaction costs and promote healthy development of China’s capital market.