International Trade Finance In The Financial Crisis: Function, Effect And The Choice Of China

Since the international financial crisis, the global trade declined sharply, except the drop in global demand, the most important reason is the contraction of the international trade finance. The shortage of the international trade finance punshed up its cost. Global buyers and companies are subject to the constraints of international trade finance, which raised the fear that the lack of international trade finance could deepen and extend the crisis. International trade finance, as a means of financial support, has the functions of allocation, risk diversification and trade facilitation. Different from previous study, the paper analyzed the international trade finance from a broad macroeconomic perspective.In the paper, we firstly analyzed the changes and effects of international trade finance using the related descriptive data.On this basis, the related theories are on research, which includes three terms:the relation of international trade and development, the existence of trade finance gap in the financial crisis and the global value chain. The theories indicate:the international trade finance promotes the development of trade and optimization of trade structure. The financial crisis caused the changes of the demand and supply of trade finance, the market-lag effect made the existence of trade finance gap. Global supply chain reflect the modern specialization, the international trade finance is based on such specialization and linked to the credit. After the theory research, we study and evaluate the measures of supporting the trade finance; these measures are beneficial to the recovery of the international trade.Based on above research then turn to China, we analyzed the international trade finance effects on the empirical study. International trade finance played some role in international trade using the example of the mechanical and electrical products. The Granger causality test showed that international trade finance is the cause of the international trade. At last some suggestions are made to promote the development of international trade finance in China.