Financing Constraints And Trade Pattern Choice

In the same time with the profound changing of global economic pattern and restructuring of the global value chain, China, as the world second largest economy, is also in the time of economic structure transformation. Establishing the open economy new system, and realizing the transformation and upgrading of foreign trade mode will be the first priority for China, and the trade pattern upgrading is one of the important parts in the trade transformtaion. Because of China’s imperfect financial market and unsmooth financing channels, Chinese companies commonly face the problem of financing constraints, which has been the bottleneck for the further development and upgrading. Now the influence of financing constraint on the whole of firm export has been approved in the academic world, so study the relationship between financing conatraint and trade mode is of great significance.Based on the New-New Trade Theory, this paper uses the method of Manova(2012) to build a mathematical model about financing constraints and trade model choice, uses 2511 companies’ data between the year of 2000 and 2007 from China Industry Business Performance Database, and empirically analyze the relationship between financing constraints and the trade model choice from country, regional and ownership levels by making use of Probit Binary Choice Model.Through the analysis, we come to the following conclusions:(1) In general, both internal and external financing constraints have significant influences on enterprises trade pattern choice, the stronger financing constraints, the greater the enterprises tend to choose the processing export mode, enterprises with smaller financing constraints, are more likely to choose general trade mode or combination of trade patterns. And relative to the endogenous financing constraint, exogenous financing constraint has larger affect on the enterprises choice of trade mode.(2) From regional level, both internal and external financing constraints have siginificant influences on the enterises in the east and mid western China, and the effects of endogenous financing constraints on corporate trade mode choice significantly less than the effect of exogenous financing constraints. According to the coefficients of the internal and external financing constraints, the influences of external financing constraints on the eastern enterprises significantly glarger than the enterises in the mid western China, and the effect of internal financing constraint on the eastern enterprises significantly smaller than the enterprises in mid western China.(3) From the ownership level, the exogenous financing constraint has great effect on both domestic and foreign enterprises, but the effect on domestic enterprises are not siginificent. The endogenous financing constraint does not much affect the domestic and foreign enterprises. All the empirical results passed the endogenous analysis and robustness test.In the last part of this pape, we give the suggestions for promoting the upgrading of enterprises trade mode and easeing its financing constraints, and put forward further research prospects in the field of financing constraints and export.