The Empirical Study Of Financial Development And Technological Progress’s Effects On International Trade

Along with the progressing and development of the global economy’s integration, financial industry and international trade, as the main motivating factors, made tremendous contributions to the rapid development of the world economy. Since the reform and opening up in1978, China has achieved from a closed or semi-closed economy to a great historical turning round opening, China’s financial and foreign trade industry really started from this time, and developed rapidly along with a wide range and advancing market economy. First of all, as one of China’s rapid economic development, stimulating troika, the rapid development of foreign trade changes are obvious. The annual average growth rate of international. trade is not only faster than the annual average growth rate of world trade, even faster than the average growth rate of China’s economy; China’s foreign trade accounted for the proportion of world trade continued to rise, ranking in world trade is also rising; The status of foreign trade industry in the national economy is becoming very important along with the increasing dependence on foreign trade; The development of foreign trade industry is not only for the growth of the total number, the structure of China’s import and export commodities have been significantly optimized, high-tech products accounted for the proportion of the total foreign trade continues to grow in the state; Foreign trade market is also showing a diversified development trend. At the same time, China’s financial sector in the wave of the reform and opening up has also expanded up:The scale of financial industry is increasing, including the financial services and the number of employees, a variety of different types of banks opened outlets throughout the country; The scope and varieties of the insurance industry continues to expand; Securities industry is experiencing a scratch, from none to the big dramatic changes in the process; The financial industry of our economy and society has becoming a diverse body system formed by a kind of banks, insurances and securities. The continuous development and improvement of the system plays an important role to China’s industrial structure adjustment, harmonious transition to sustainable development and economic and social stability. In2008the world financial crisis occurred, it not only caused a huge impact on China’s financial industry, but also seriously affected the development of China’s foreign trade. In2009, China’s foreign trade for the first time had a negative growth, the financial industry also had been pushed to the cusp of attention of the whole society. Since then, people began to reflect not only the problems existed in the development of China’s foreign trade and financial industry, but more focused to analyze the relationship between finance and international trade and the impaction mechanism. In international trade, the traditional extensive export growth mode, once made a significant contribution to the economic development, it also brings a lot of problems for the sustainable development of China’s economy. First, the extensive mode of economic production caused great losses of China’s resources and environment, so, it seriously affected our comparative advantages competitive in the field of traditional resources, energy, environment and other tradition resources; As the main support for the development of international trade in so long time, the comparative advantage of cheap labor is undergoing a severe test, because in addition to the changing structure of our population and labor supply and demand, this competitive advantage is gradually replaced by Bangladesh, Vietnam, Cambodia and other countries; Once again, exports are still in the low end of the global value chain, most exports are mainly labor-intensive products, as well as a small amount of capital-intensive, which are relatively low-tech, with little high value-added, and those high-tech production processes and interests still remains in the hands of those developed countries; Finally, China’s foreign trade enterprises have low anti-risk ability and the development of foreign trade is imbalanced. From the above analysis, we found that the low level of technology has an exceptionally outstanding impact on the problems of our international trade. Meanwhile, there is also shortage in the development of China’s financial. After the financial crisis, the Chinese government has also developing a series of adjustments, which actively encourage technological innovation, develop technology-intensive industries, promote the upgrading of the industrial structure of the country, in order to achieving the transformation of China’s rapid economic development. Our scholars from financial development, technological progress, upgrades of foreign trade and other point of view of learns the China’s economic growth situation, especially after the financial crisis, give a great deal of attention and research to the relation of China’s financial development and foreign trade, many scholars have found that, for a series of problems that exist in the foreign trade industry, they can be solved a lot through the further development and deepening of the financial.At present, domestic and foreign scholars through continuous research and empirical analysis found that:the improvement of a country’s financial development has a significant role in promoting the international trade in the country, at the same time, there is also some kind of long-term correspondence between financial development and technological progress, and technological advances also can promote the development of international trade. But these are analyzed from the impact of unilateral conduct, there is few people put these three facts in one frame, considering the three long-term effects of those relationships. Based on the verification of financial development to promote technological progress, this article built a unified model, putting the three factors in one model, research and analyze the relationship between the three comprehensive, texting the direct impact of financial development on the development of foreign trade, and the indirect impact financial development on the development of foreign trade through the channel of technological progress. Combing the generated conclusions with the actual economic situation, it expects to solve China’s current various problems in the foreign trade from the point of financial and technological progressing separately, in order to making a contribution the achieving stable and healthy international trade and sustainable development, also proposing individual policy recommendations on the future development of China’s financial roads, upgrading of industrial structure at this stage, and continuously push forward the economic transformation.Based on the data about development of financial, technical and international trade from China’s reform and opening up in1978, through the establishment of co-integration model, the article is attempting to study the long-term impact of financial development and technological progress of China’s international trade development. The article includes an introduction to finance, foreign trade theory and literature review; elaborate theoretical support and three paper analyzes the impact of the mechanism; empirical analysis and co-integration select relevant indicators on the macro level; Chinese Import and Export financial Support and Foreign Trade Bank of empirical analysis on the micro level; conclusions and policy recommendations derived from the contents of the proposed empirical research. Financial scale and the increasing of financial efficiency have a number of long-term role in promoting the development and optimization of the structure of international trade; Technology advances has made contributions to the scale of the development and upgrading of the structure of foreign trade industry. Articles made there from coordination in promoting China’s financial markets continue to improve the process, should focus on the coordinated development of the internal financial system, financial size, structure and efficiency of economic development have made a great contribution, but only to maintain the system of internal financial development in order to stabilize the financial markets continued to develop; At the same time increase the non-public economy financial support in order to improve the efficiency of the financial system and thus promote the development of foreign trade and economic; Vigorous development of China’s stock and bond markets, give full play to the important role of direct financing and the huge market in the financial system; Constantly improve our level of technology, a critical period in the development of China’s economic transformation model, technology continues to improve not only affect the development of China’s foreign trade industry, to change our industrial structure, economic stability and sustainable development and so has the role of the abyss and significance.