Empirical Analysis For The Relation Of Financial Development And China's Foreign Trade Structure

A country's foreign trade structure, especially the structure of export commodities, is an important symbol and objective reflection of a country's level of economic development. With the improvement of China's market economy, China's financial industry is also changing from planned economy to a market economy.How to promote China's financial development, play a role in financial resource allocation, thus promote the optimization of China's foreign trade structure, is an important issue we face. In this paper, financial development through the"capital accumulation"and"promoting innovation"to influence a country's export trade. First, Pagano (1993) put forward Solow - Swan revised model of financial development, using this model we get to this conclusion that there is a"capital accumulation"effect of financial development. Second, through the use of Kletzer and Bandhan (1998) two-sector model framework with Jones (1995) model, we create a new two-sector model to analyze the financial development of the"technological innovation"effect. At last, we make empirical test and comparative analysis.In the empirical study, this article follows the"dichotomy"of thought. Dividing the financial system into financial intermediation and financial markets,VAR model is described the relationship between the financial development and the structure of export commodities. Finally Granger causality test of the causal relationship between the variables tested. Through theoretical analysis and empirical research reached the following conclusions:First,Financial development influence a country's export trade through the"capital accumulation"and"promoting innovation".There is a long-term equilibrium relationship between financial development and goods structural changes of export, which reflect the close ties between the financial development and structure of export commodities and the realization of financial system and harmonious development of international trade on China's foreign trade development.Second,The"capital accumulation"and"promoting innovation"structural upgrading of export promotion effect of financial development is not exactly the same, the efficiency of financial intermediation"promoting innovation"than the scale of"capital accumulation"can be enhanced to improve trade structure and"promoting innovation"to promote the long-term effect is more significant. Again,Direct financing of stock market size is too small share of total financing. Coupled with being emerging markets, the market fluctuates frequently and optimizes the product structure of China's role in promoting exports weakly. Finally, based on empirical conclusions of this paper, we present we should think of the total financial structure of financial concerns financial efficiency, vigorously develop the direct financing market,increase innovation and high-tech SMEs,financial support,increased supervision,illegal speculation and excessive speculation and make other policy recommendations to promote the optimization of China's foreign trade structure, enhance the international competitiveness of our economy.