A Study On The Interaction Between Trade Development And Financial Development

Trade and finance as the engine and core of economic growth, are mutual penetration and promotion in the process of globalization. As an integral part of economic, the appearance of finance is not independent, is accompanied by the development and consummate of trade. Trade demands promote the development of the finance, it promoted the centralization and the redistribution of money, accelerated the flow of capital, exchange, lending, investment and other financial tools can convenient transactions, reduce risks, improve the efficiency, so the demand for financial services emerged and grew. With the continuous development of the financial,service range is wider and wider, the efficiency is higher and higher. The development of finance can facilitate trade, reduce trade risks and provide financing ways. It promotes the growth of trade, optimized the trade structure and promote trade liberalization. Trade as the real economy,finance as the virtual economy, the financial should be in the service of the trade. In recent years,the rapid development of finance in China, the rapid development of finance is in the lead and optimization of the real economy, or away from the real economy? We should have priority to the development of finance, or trade first?Firstly, the article comb the history of trade and financial development, found that financial once as the passive follow attached to the development of the trade; developed into relatively independent power, plays a positive role in supporting trade; and the financial innovations in recent years, especially the Internet financial innovation, the mode and scale of trade, have a significant impact in promoting trade development. The relationship is mutual penetration: the innovation of financial tools, the optimization of financial structure, the improvement of financial system, every step of the financial development provides services for trade, solves some problems of the trade and promotes trade development.Secondly, review and comb the trade and finance development theory, based on the financial function theory carry out theoretical arguments: on the one hand, study trade demands for financial, on the other hand, based on the financial function theory, the continuous development of financial provide services and support for trade, promote the development of trade volume and optimize trade structure.Thirdly, based on the resources endowment theory, finance as a factor has an effect on trade,so select data from 1980 to 2013 to do empirical testing,use the added value of the financial sector and the social financing scale to measure the financial scale and financial efficiency,foreign direct investment, research and development spending, exchange rate as the control variables, trade size and trade structure as explained variable to validate my opinion. The result shows that though China’s finance development is rapid, financial structure is not perfect enough,the allocation of resources is not reasonable enough, financial support to the development of trade development is not big enough, promoting effect is not obvious, the service remains to be perfect.Finally, on the basis of theoretical and empirical conclusions, puts forward suggestions in multiple perspectives. By promoting the development of better financial, provide more comprehensive support for trade and service, to promote the development of trade.