Research On The Impact Of FinTech On The Liberalization Of Trade In Financial Services

Since 1993,the General Agreement on Trade in Services(GATS)has began to provide a regulatory framework for the governance of trade in services,which means the importance of trade in services has been recognized by the international community.Among trade in services,financial services is indispensable in the operation of the global economy.In recent years,Fintech has revolutionized the delivery of financial services through digital technology,and has changed the trading behavior of producers,consumers and traders,also has made the supply and demand of financial services more dependent on data flows than before.It has brought about a series of profound changes to the financial services industry and the world economy,as well as the rules of trade in financial services.In the bilateral and regional trade agreements,particularly in CETA,the scope of financial services open to the outside world becomes wider,the rules of trade in financial services are novel,and the ongoing TISA negotiations are also approach these high standards.In the context of the rapid development of Fintech,it is necessary to research its impacts and effect on the liberalization of trade in financial services,and to analyze the new rules on trade in financial services,which are dominated by restrictions on cross border data flows,there is also a need to make recommendations on the challenges of digital trade rules in the financial services sector.This research firstly measures the development level of Fintech and the status of liberalization of trade in financial service in major countries.It shows that the national gap of liberalization of trade in financial service is widening and the overall liberalization level shows a decreasing trend.This is mainly due to increased barriers to foreign capital entry,especially the stricter restrictions on cross border data flows.Then,on the basis of gravity model,it is concluded that the costs of financial services trade in developing countries are significantly higher than those in developed countries,and the competitiveness of financial services trade in developing countries is weak.Secondly,from four dimensions: the cost of financial services trade,the characteristics of financial services market,the diffusion of digital technology and the potential risks of Fintech,this research expounds in detail the influence mechanism of Fintech on the liberalization of financial services trade.That is to say,through the case of block chain,Fintech help to reduce the financial transaction cost of enterprises and consolidate the foundation of the liberalization of financial services trade.The artificial intelligence case shows that Fintech promotes the differentiation of financial industry,which leads to the transformation of financial market from monopoly to competition,thereby ensuring the trade gains during liberalization process.The case of big data illustrates that Fintech leads to a new paradigm of digital economy.After 5 to 10 years,the penetration of digital technology to the macro economy will further enhance the level of liberalization of financial services trade.Conversely,a series of high risk factors,such as data leakage,network risk and so on,will be brought about by Fintech.The simulation of financial supervision game by MATLAB depicts that it is necessary to strengthen the cooperation of international financial supervision.Overall,Fintech has positive and negative impacts on the liberalization of trade in financial services.The positive effects include the reduction of cost,the intensification of industry competition,and the diffusion of innovation.The positive influence causes the scale expansion and more liberalized of cross border financial services trade,which leads to form the liberalization of financial services trade "scissors gap" and its enlarge.Negative effects,including potential risks such as bubbles and data leaks will lead to weaker levels of liberalization in financial services trade and a narrower "scissors gap" in the liberalization of financial services trade in major countries.Finally,in the empirical part,I test the effect of Fintech on the liberalization of financial services trade,which taking 41 major countries as the samples.It is concluded that with the development of Fintech,the moderating effect of financial market efficiency on the relative advantage of financial service trade and the liberalization of financial service trade becomes obvious and magnified.That is,when a country's Fintech develops above the critical level,it will lead to a stronger willingness to open its financial market to the outside world.Conversely,when a country's Fintech develops below this critical level,the willingness to close financial markets becomes stronger.It is concluded that the positive effect of Fintech on the liberalization of financial services trade will lead to the "scissors gap" widening.For China,in order to meet the trend of Fintech,deepen the opening degree of financial services to the outside world,and enhance the international competitiveness of chinese financial service industry,this research puts forward the following policy suggestions: first,to coordinate the relationship between capital account opening and liberalization of financial services trade The second is to innovate the regulatory system and carry out cooperation in the Fintech field,and the last is to actively participate in the formulation of international financial and trade rules on the principles of equality and reciprocity.