Research On The Impact Of Financial Development On China's Export Technical Sophistication

Since the reform and opening up,China's economy has maintained a rapid increase in total exports.Simultaneously China's export commodity structure also upgrade quickly.China's export commodities experienced a rapid conversion from low value-added manufactured products to high value-added manufactured products.China's export technical sophistication has already reached closely to the level of some developed countries,known as " the puzzle of China's export technical sophistication".Of course,since a large proportion of China's exports are completed through processing trade and foreign-invested enterprises,especially in the exports of high-tech products,which led to that China's export technical sophistication is different from other countries.Since the US financial crisis and European debt crisis,the global economic recovery is slow,not only affecting China's exports,but also the enhancement of China's export technical sophistication.Under the economic "new normal" background,how to enhance China's export technical sophistication furtherly through financial development has become imperative.Therefore,under the premise of the distinguishment of different trade bodies and different trade terms,it is of great practical significance to study the research of the influences of financial development on the technical sophistication and put forward relevant suggestions.Firstly,the paper measures the export technical sophistication of China's provincial areas,analyzing the current situation of China's exports.Through principal component analysis method to build the financial development index,and on this basis,the paper analyzes the change of the financial development in China,finding that there is a strong positive correlation between the export technical sophistication and the financial development.Secondly,this paper builds the theoretical framework of the influence of financial development on export technical sophistication,analyzing how financial development through the four financial functions of mobilizing savings,disclosure,corporate governance,risk dispersing act on export technical sophistication;how financial development through the three endogenous growth channels of FDI,human capital accumulation and R&D act on export technical sophistication.Then,based on the 2000-2010 datas of China's 29 provinces,after the distinguishment of differnt trade bodies and different trade terms,using fixed effect model and panel quantile regression method,the paper empirically analyzes the influences of financial development on export technical sophistication of different trade bodies and different trade terms.The result shows that: the financialdevelopment is generally beneficial to the promotion of China's export technical sophistication;with the view of different trade bodies and different trade terms,financial development is conducive to the increase of the export technical sophistication of foreign processing trade,domestic general trade,foreign general trade,but can not promote the export technical sophistication of domestic processing trade;from the view of different quintiles,there are some differences in promoting the low-end,middle-end,high-end export technical sophistication.Finally,based on the above research,this paper puts forward relevant suggestions on how to improve China's export technical sophistication through financial development.