Research On The Influence Of Market Openness On The Trade Competitiveness Of Financial Services

This paper analyzes the impact of market openness on financial service trade competitiveness from the theoretical and empirical point of view. Theoretically, using the comparative advantage theory, the new trade theory and the competitive power theory, the opening degree has a promoting effect on the trade competitiveness of financial services. Empirically, first of all, the status of China’s entry into the WTO commitments, the degree of opening, the opening degree of the actual market,financial services trade competitiveness were analysis and explanation, found China’s commitment to openness, although high, but real openness, financial services trade competitiveness has been low. Secondly, assignment method is used to get the data of34 countries commitment openness. Combined with the 2013 national competitiveness data, It finds out that the bank commitment openness degree has a positive effect on the bank competitiveness; thirdly, using the panel data of 15 countries from 2001 to 2013, through Cointegration analysis, regression analysis,Granger causality test, it draws the conclusion that cross-border investment and foreign bank’s entry not only can increase the competitiveness of host country’s financial service trade competiveness but also has a causal relationship. In summary,the market open degree has positive effect on trade competitiveness of financial service.The promotion of China’s weak competitiveness can be got by improved actual opening degree. In the end of the paper three suggestions are proposed to raise the level of the actual openness.