A Study On The Impact Of Financial Development On China’s Position In Global Value Chain From The Micro Perspective

With the continuous development of world economic integration, China’s financial industry and international trade have experienced rapid increase in the past 30 years. Existing studies on the relationships between financial development and the status in global value chain are mostly from the macro perspective. Studying the impact of financial development on the enterprises’ position in the global value chain will be helpful to make provide the financial policy and adjust industrial structure.Combining the mature financial index with micro perspective, the index system in this paper consists three core variables, five control variables and the variable of the position in global value chain. Using fixed effects model to analyze the impact of three financial indicators on the position in global value chain respectively.The empirical results show that the scale of financial development will not help enterprises to rise their position in global value chain. Structure indicator of financial development has significant positive influence on the promotion of the enterprise’s position in global value chain. Financial development efficiency indicators, however, has a negative effect on the indicator of global value chain.Finally, this paper proposes advices from five aspects. The first one is to expand the scale of the development while at the same time paying more attention to the quality of the financial development. Second advice is to promote marketization of financial system, letting the market to determine configuration of financial resources. Then continuing the reform of financial system and strengthening financial risk monitoring. The last thing is to keep up with the changes of the times, expanding our financial market openness to the outside world.