The Financial Development And Export Trade: Positive Study Based On Chinese Data

Finance, trade and economic growth are the focus issues all the time, the theory of financial development argues that financial development can promoting economic growth, the theory of international trade has also proved that export trade is one of the promotion mechanisms of economic growth. But there is seldom research on the link between the financial development and export trade. Until recent years, some economists have begun to study the cross-cutting areas. But most of their study is established under the frame of financial development theory, and haven't found the theoretical basis for that financial development affecting the export trade. This is the insufficiency of this area. This paper will supplement it by focus the emerging study themes, and explores the emerging topic theoretically and empirically.This paper use the research framework of Beck(2002), discusses the relationship of financial development and export trade based on the theory of economies of scale, the scale of loan, international trade financing, policy finance, risk management and other mechanism. The main line of this paper is that the development of finance institution and capital market can help enterprise to settle the problem of capital liquidity, and can make the production sectors especially which have the features of economies of scale get enough capital to exert productive technology and capacity, enhance the comparative advantage, finally affect the volume and structure of export trade. In that addition, when two countries have the same other conditions, the one has more advantage finance have the comparative advantage on the department which has economies of scale, and become the net exporter of this production.On the base of theory framework, we take the positive study with the different indicators of Chinese financial development and export trade. We find that is the same with theory conclusion that financial development can improve the volume of export trade and optimize the structure of export trade.At the end of this paper, we give the advise of how to improve the development of export trade through deepen financial development on the base of the theory and empirical analysis.