Exploring Pattern Of Trade In Financial Services In Developing Countries

Many scholars think trade in financial services can improve the financial system and promote economic growth in existing literature. Every country attachs importance to trade in financial services. Some country groups and international organizations which include developed countries headed by the United States, WTO, IMF and world bank dedicated to the liberalization of trade in financial services.However, developing countries have inferior position in financial services trade. The relative practices of trade in financial services which is very important to developing countries. This paper studies the determinants, effects and measures of financial services trade. The author mainly researches the policy pattern of trade in financial services in developing countries and focus on the mature pattern, the transitional pattern and the growing pattern.The characteristics of this paper lies in three aspects:Firstly, the author selects a new research angel to review financial services trade. Most of scholars in this field mainly paid attention to the liberalization and effect of financial services trade, only the few explored the practice of developing countries. The paper discusses the financial openness form international trade angel, illustrates the systemic experience of developing countries in financial services trade, and avoids the repeat research effectively.Secondly, the author creates the strategic trade theory and designs the valuation system of trade in financial services. The strategic trade theory has the difference with the traditional trade theory which suggests the strategic benefits can encourage developing countries participate in financial services trade. The valuation system of financial services trade pattern may explain the development level and character of financial services trade pattern.Thirdly, the author draws a conclusion which advocates the steady and conservative principle in the policy design of Chinese financial services trade. Many scholars suggested Chinese government pursue the trend of developed country that think a lot of financial globalization excessively. This paper finds the fragility of financial system which could lead the instability of financial system on condition that developing countries open the financial services trade. Therefore, the author proposes China should treat financial services trade cautiously.