A Study On Spatial Effect Of Financial Development On External-Oriented Economy

China has witnessed a qualitative leap of external-oriented economy after more than 30 years of development of external-oriented economy with both "bringing in"and "going out" strategies.Due to differences of geographical location conditions and social economic basis,plus gradient open policy of central government,external-oriented economy presents significant regional differences in the long-term development process.The financial system plays a very important role in the development of regional economy with the effects of reducing risk sand allocating financial resources.As a result,more and more scholars begin to pay attention to financial factors in explaining significant regional differences.On the one hand,financial development affects the formation of comparative advantage and optimization of trade structure through capital accumulation,scale economy,technology innovation and other channels.On the other hand,financial development impacts external-oriented economy by influence on the attraction of external capital and spillover effect of knowledge and technology.Therefore it is of great significance to study the interactive influence of external-oriented development from the perspective of financial development.With an integrated use of Principal Component Analysis(PCA)and Data Envelopment Analysis(DEA),this paper will firstly measure the degree of external-oriented economy and financial development level respectively to theoretically analyze the influence mechanism of financial ecological environment on external-oriented economy.Using panel data of 287 Chinese prefecturecities from 2005 to 2014 and calculating four spatial weight matrix based on geographical features and socioeconomic characteristics,we conduct empirical research of interactive influence of external-oriented economy from the view of the financial development with spatial lag model The empirical results prove the existence of positive spatial correlation of external-oriented economy and positive effects of expanding scale of financial development and improving efficiency of financial development and performance of commercial banks on the city's external-oriented development.These conclusions are robust under different spatial weight matrix?financial development indicators and regression methods.Further empirical tests with indicators of spatial agglomeration of technical innovation prove the positive influences of technical innovation on external-oriented economy.Based on the theoretical analysis and empirical conclusions,this paper puts forward some thinking about transformation and upgrading of external-oriented economy from the perspective of financial development as a wish to provide regional governments,financial institutions and relevant decision-makers with proactive and feasible policy suggestions and measures.