The Impact Of Financing Environment On Our Export

Export is different from domestic sales in many ways. Generally speaking, an export company usually faces higher default risks, higher working capital requirements and much severer asymmetric information problem, etc. Due to these features associated with export, exporters have to turn to financial instruments of all kinds for financing and managing risks. As a result, exporters rely heavily on financial institutions and the export of a country becomes more sensitive to its financing environment changes.After reviewing the literature in this field, the author set up a model to illustrate the micro-mechanism between financing environment and firm export behavior. It's a model of heterogeneous firm trade and was set up by slightly revising the hypothesis in classical Melitz (2003) model. The model suggests that, after considering the financial factor of the enterprises, the productivity threshold for export would be lowed down a bit. While external demand reduction and financial environment worsen would raise the threshold and compel some financial constrained exporters to turn to domestic market.In the ensuing chapter, some predictions of this model were tested empirically on the basis of a panel data in China from 1994-2008. Empirical results suggest that external demand reduction and financing environment would significantly affect our export. However, the export-promoting effect for issuing stock was insignificant in China, which may reveal the single structure problem of our capital market.At present, financial constraint problem is especially serious for SMEs (small and medium enterprises) both in China and all around the world. To find an answer to solve the financial constraint problem faced by exporting firms, the author took both foreign experience and inland reality into consideration in chapter 4 and put forward a new approach by suggesting to develop a multi-layer capital market.In chapter 5, the author concludes the main results in this paper and briefly outlooks future possible research in this field.