A Study On The International Settlement Costs Of Chinese Import And Export Trade

With the deepening of economic globalization, the attention that every country pays on international trade is also increasing gradually. But international costs are treated as the main barrier of foreign trade development in a country. International costs become a hot spot for research to solve this problem. As the last and also most important parts of international trade, international settlement is the key of international trade. Although international settlement accounts for about3.5%of international trade, it’s still a very important composition of international total costs. However, research about international settlement costs of China has not begun yet. This paper bases on this blank. Start from the real situation of Chinese international trade in recent30years, analysis the international settlement costs of Chinese import and export trade, then we can proposed some way to optimizing it, though this way, we can lower trade total costs and promote the further deepening of China foreign trade, improve the competitiveness of China foreign trade.In order to describe international trade costs of Chinese import and export trade clearer, this paper firstly summarizes the relevant literature in general about international settlement risks and costs of international settlement at home and abroad, and then put forward the review on my opinion. Secondly, briefly introduces the generally situation of Chinese international trade in recent30years and the major international trade partners, and later the introduction of the compositions and influence factors of international settlement costs. And the qualitative and quantitative analysis will be made next.This paper primary studies the major compositions and influence factors of international settlement costs in Chinese import and export trade on qualitative analysis. The major compositions of international settlement costs are bank commission charge, the costs of currency choosing and exchanging, the time costs of international settlement, and the risk control costs. And the influence factors about international settlement costs in Chinese import and export are researched from the perspective of macro and micro.The factors at macro level include exchange rate changes and international settlement risks, the factors at micro level contain the influence of settlement tools, the influence of settlement currency, the influence of settlement time and the influence of settlement methods. In terms of quantitative analysis, through the series data of Chinese import and export in1979—2013, assume that the bank commission charge, currency exchange costs, time costs of international settlement, risk control costs as explanatory variables, to do a simple regression analysis about Chinese import and export trade, through the estimated coefficient of regression results, to illustrate the four costs impact on Chinese import and export trade respectively.Research results show that international settlement costs in Chinese import and export trade are positively correlated with Chinese foreign trade. As to export, the bank commission charge is the smallest share of Chinese international settlement costs. And the international settlement costs increases as the increase of bank commission charge, currency exchange costs, settlement time costs and settlement risks. The bank commission charge for export on Chinese international settlement costs is the most directly factors, the international settlement costs rises as the rise of bank commission charge, currency exchange costs and the costs of settlement time.Innovation point of this paper is to put forward the concept of international settlement costs, and analyze the compositions and influence factors of international settlement costs of Chinese import and export trade creatively, also shows the international settlement costs impact on Chinese import and export trade through the regression analysis and partial least squares regression. At present, most studies focused on the structure and influence factors and how to reduce the total costs of international trade, researches on international settlement costs are relatively rare, studies on the analysis of Chinese import and export are even less.