The Study Of The Impact Of China’s Financial Development On Export Trade Structure Optimization

The export structure can reflect a country’s economic condition, and it also candecide a country’s status in the international trade and how much the country canbenefit from the international trade. At present, the majority of China’s exports islabor-intensive products, which are low value-added and low skilled. Though, theexport of high value-added capital-intensive products and technology-intensiveproducts has a rise recently, but it still does not have a strong competitiveness in theinternational trade. According to this, China’s export structure has to get a conversionto the high level. To form a comparative advantage in capital and technology, Chinahas to accelerate the development of financial sector. The financial sector can play itsresource allocation function, increase capital accumulation and to promotetechnological progress. Only by this way, the capital-intensive products andtechnology-intensive products can get a advantage in the producing and the exportstructure can get a conversion to the high level.The study on the impact of financial development on export structure’soptimization is an emerging topic in economic research. Because it combines thetheory of financial development and international trade theory. The paper take acombination of theoretical analysis and empirical analysis, it not only analyzed therole of financial development on export trade structure optimization mechanism, butalso it established the model of measurement test..At first, the paper analysis the function of financial development on theallocation of resources and obtained the financial development promotes the exportstructure’s optimization by institutional strengths, economies of scale, technologicalprogress and risk diversification. Then, the paper described China’s financialdevelopment status from its financial scale, financial intermediaries and financialefficiency, at the same time, in addition, the paper described China’s export structurewith the proportion of the capital and technology-intensive products in the exports ofthe manufactured goods as well as the proportion of the capital andtechnology-intensive products in the exports of total goods. After that, the paperselected related indicators of China’s financial development and export trade structureoptimized, basic on this, the paper established metrology and inspection model to playa empirical test on the relevance and impact between the financial development and export trade structure. Through the empirical test, the paper gets a conclusion that thescale of financial development and financial structure affected the export structurepositively. Compared with it, the financial efficiency affected the export structurenegatively. The conclusion means that financial development can promote the exporttrade structural upgrading in overall. But financial development can not rely solely onthe quantitative expansion of the financial aggregates and capital markets; it needs tofocus more on improving the efficiency and quality of the financial system. At last, tosolve the problem in the development process of China’s financial, the paper gavesome suggestions to promote the upgrading of China’s export structure.