The Impact Of Finance Development On China's Import-export Commodity Structure

With the expansion of finance and growing diversity of finance instruments, it impacts all aspects of Chinese society and economy.China is during a transition period, one of the most important problems is how to upgrade the structure of import and export commodity.But in a long time,few domestic scholars pay attention to the subject. Foreign economic practice has shown that a country's development of finance has much to do with the structure of import and export commodity.Capital-intensive industries will get more finance support than labor-intensive industries, so as to enhance the country's comparative advantage in capital-intensive industries exports,then finance decelopment accelerate the structure of import and export commodity. In recent years, as China's booming economy, finance has developed rapidly.But some limited experience reserches have not gotten meaningful conclusions whether China's finance development improve the structure of import and export commodity.This situation is due to the phenomenon that China's finance is only limited to develop finance intermediation and stock market's scale, efficiency and the diversification of finance instruments have not made progress,which hinders the mechanism of action between finance development and the structure of import and export commodity. As a result, this paper attempted to study the China's finance development's influencing on import and export commodity,to get a detailed inspection on the different impact by finance intermediation and stock market.Firstly, this paper described some related concepts of finance development and the structure of the import and export commodity, focused on looking for the theoretic basis of finance intermediation and stock market effecting on China's structure of the import and export commodity by summing up the domestic and Overseas related theories.Secondly, this paper summrised evolution history of finance development and the structure of the import and export commodity in China. It emphasized analyzed how finance intermediation and stock market effectted on China's structure of the import and export commodity today. Next, on the basis of function model mentioned by Beck (2002), this paper designed a model on finance development and the structure of the import and export commodity by two parts of empirical research: this paper designed a model on finance intermediation and the structure of the import and export commodity by the panel data from 2000 to 2006. Using this model, this paper mesured the different impact by different index and areas, and fartherly studied what causes the difference. This paper designed a cointegration model on stock market and the structure of the import and export commodity by the time series data from 1991 to 2007. Using this model, this paper analyze the different impact by different index, and fartherly studied what causes the difference.Finally, this paper got some basic conclusions and gave some polisy suggestion precisely.