An Analysis Of The Influence Of Financial Development Of The Dual Margin Of Exports

With the constant innovation and development of trade patterns,world trade has shown relatively strong growth over the past 20 years,but when it suffers financial crisis,the growth of export trade shows greater volatility.Traditional international trade theories attribute the country's production and international trade to the differences in relative factors or divisional productivity,and neglect the important influence that the financial system may have in international trade.However,as scholars deepen the research on the influencing factors of export trade,it has been found that the improvement of financial development level is conducive to the growth of export trade.At present,the development of financial markets has not yet fully achieved liberalization and the financial system is not perfect.Under this background,this article will examine whether raising the level of financial development will promote the country's exports.This article has selected trade data from 36 countries around the world,and its trade volume has accounted for more than 85%of the total global trade volume.It makes sense to do international comparative analysis of global trade data.This paper decomposes the export trade data into intensive margin and extensive margin,and analyzes in depth the dual margin structure of export trade,then uses financial monetization indicators,stock market indicators,and private credit indicators to study the impact of financial development on the export dual margin.The results of this study show that the vast majority of countries' export growth is dominated by intensive margin,while the expansive margin contributes very little to the growth of export trade.The empirical results of this paper show that when a country experiences external shocks,the impact of expansive margin on intensive margin is much more moderate.This shows that an intensive margin growth structure is unstable and particularly vulnerable to external shocks.And show greater volatility.In addition,the empirical results of this paper show that the level of financial development can effectively promote the intensive growth of export trade,especially for advanced economies,the improvement of the level of financial development can have a significant positive boost effect to the intensive margin and extensive margin of export trade.Finally,this paper mainly proposes three suggestions:First,deepen the development and reform of financial markets to ensure the effective allocation of funds;Second,encourage financial intermediaries to form an orderly competition,effectively reduce corporate financing costs;In addition,actively guide enterprises to enrich export products.Finally,for developing and emerging economies,this paper proposes that foreign investment should be actively introduced to improve investment policies.At the same time,this article also addresses some policy recommendations to promote the growth of China's export trade.