A Study On The Effects Of Financial Development On International Trade Of Yangtze River Delta

With the economic globalization, the finance and the trade is increasingly becoming the core and the engine that drives economic growth, meanwhile the fusion and interaction between finance development and foreign trade is increasingly becoming prominent in the region as well as inter-region. Yangtze River delta is typically representative of China’s export-oriented economy development, and is a leader in the financial development process. In the context of China’s foreign trade growth slowing down, the research on the intrinsic link between finance development and foreign trade in Yangtze River delta have important practical significance.After a literature review about financial development and foreign trade, the characteristics and statuses of financial development of Yangtze River Delta are firstly analyzed from three aspects of scale structure and efficiency. Secondly, this paper studies the development situation of foreign trade and discusses the inherent problems. Finally, the experience influence regard to financial development on the scale and structure of foreign trade is tested.Applying panel data of Yangtze River delta,based on seemingly unrelated regressions(SUR) estimate technical. The results show that the scale of financial development has a significant positive effect on the trade scale of Shanghai and Jiangsu Province, and the scale of financial development has no significant effect on the scale of trade in Zhejiang province. The financial development efficiency has a significant effect on the trade scale of two provinces and one city in the Yangtze River Delta region. This paper also using the panel data on two provinces and one city in Yangtze River delta and seemingly unrelated regressions(SUR) estimate technical. The results suggest that financial development efficiency significantly promotes upgrading of export trade structure and financial development scale did not. In addition, it also finds that the improvement of the degree of opening to the outside world will help to upgrade the export trade structure, and the foreign direct investment has a significant effect on the export trade structure upgrading.Finally, this paper puts forward some suggestions on improving the level of financial development in the Yangtze River Delta region in terms of the expansion of the financial scale, the improvement of financial efficiency and the promotion of financial reform.