A Study On The Effects Of Financial Development On International Trade In China

Since 1980's, with economic integration and free movement of the production factors in the world, the inner economic development of every country intensely links with the change of the outer economies. Economic globalization and intergration becomes the trend of development, captial flow has greatly promoted financial development in the process of economic globalization and intergration.The commodities and services crosses national boundaries, which further promote international trade.The mutual connection, infiltration and promotion between financial development and international trade pushes the world to form a great and unitive market and to prompt the rapid development of the world economy. Financial development plays an important and irreplaceable role into the development of foreign trade and economic cooperation in the long run. With China's entry into WTO, foreign trade acts as a more important role in national economic growth, no matter the trade competition lifting which is decided by the comparative advantage or the trade structure transform which is drived by the change ways of economic growth in the condition of the tight constraint of resource environment, they all demand the finance system to scan it's function again.In real economy, it can't success to cultivate a modern finance system that can promote international trade development without the help which comes from nonmakert factors such as the government,society and so on; we try to take advantage of financial policies to promte international trade, which bases on the keen awareness of the great effects of financial factors on international trade development. For this purpose, this paper mainly makes researches on the effects of financial development on international trade from the perspective of theory and positive respectively, which bases on the realities of China.Following is the full context of this dissertation: Chapter I is an introduction, which briefly states the backgrounds, implication and methodologies of this paper and gives a summery of the relevant researches on the relationship between financcial development and international trade; the theory analysis framework of the effect of financial development on international trade has been established in the chapter II, including in the definition and function of financial development, the formation and evolution of the relationship between financial development and international trade, ways and channels, performances and characteristics of financial development on international trade; in Chapter III, this dissertation firstly analyzes the overall situations of international trade and financial development, then uses cointegration theory to test the equilibrium effects of the financial development on international trade based on time series and panel data. In chapter IV, this dissertation further makes the panel data models of the east, middle, west area and uses panel cointegration theory and generalized method of moments(GMM) to analyze the long run equilibrium effects and short dynamic effects of financial development on import, export respectively, which shows remakably difference of the effects among eastern, middle, western China based on crossed provinces panel data. At last, this dissertation analyzes the success experiences of the developed countries and points out the corresponding measures on how to further speed up financial reform and brings the financial support into full play in international trade on the basis of the positive results.