Financing Constraints And Export Trade Pattern

The extension of the global trade industry chain has led to differences in the division of labor and profitability of countries.As an active participant in international trade activities,China needs to create and gain more value in the global value chain,therefore the transformation of the trade pattern is very important.The development of China's financial market is not as mature as that of developed countries.The opportunities for enterprises to obtain financing directly in financial markets are relatively small.The limited source has hindered the development of corporate financing,and the transformation of corporate trade patterns has also been limited.The main content of this paper is to study the financing constraint and export trade pattern,and the global value chain status of enterprises can also be measured by export trade pattern.The main methods used are statistical description method,comparative analysis method and panel data empirical analysis method.Drawing on the model of enterprise export pattern selection by Manova and Yu(2012)and Li Fangjing(2014),this paper uses China's industrial enterprise database and China's customs data from 2000 to 2006 to empirically analyze whether financing constraints will affect the choice of trade patterns of exporting enterprises.This study has made some contributions based on the existing literature.Different from the existing literature using cross-section data,this paper uses 7 years of continuous panel data,the results are more reliable.Previous research only stops on the impact of financing constraints on the export trade mode of enterprises;without further research,this influence will be extended to the global value chain status of enterprises.The existing literature mostly measures the financing constraints from a single perspective,and studies the internal or external financing constraints separately.This paper breaks down the impact of financing constraints,studies internal and external financing constraints.It divides external financing constraints into bank and commercial credit constraints.Through analysis,the paper draws the following conclusions:(1)The status of the global value chain of processing export enterprises is lower than that of nonprocessing export enterprises,and the products of non-processing export enterprises are at the higher end of the global value chain.(2)The more production links the company participates in,the more costs it needs,and the greater the profits it earns.Financing constraints will prevent enterprises from seeking high profits.Enterprises will choose the most profitable ordinary trade according to their own financing ability,followed by import-and-assembly processing trade and finally pure assembly processing trade.(3)Internal financing constraints and bank credit constraints have a significant impact on the choice of corporate trade types.The impact of commercial credit constraints is slightly smaller,but also significant.In general,companies are more inclined to choose processing trade,whether internal financing or external financing constraints increase.(4)Under the scale system,internal financing constraints have a significant impact on large-scale enterprises;the impact of bank credit financing constraints on both scale enterprises is significant.(5)For processing trade enterprises,the greater the internal financing constraints or commercial credit constraints,the more enterprises tend to choose pure assembly processing trade,and the impact of internal financing constraints is greater than the external financing constraints.This paper also puts forward opinions from enterprises,governments,and financial institutions to ease corporate financing constraints and improve the status of enterprises' global value chain.Enterprises should do a good job of internal management,especially pay attention to financial monitoring;the government should give appropriate policy and financial support;financial institutions must improve products on the market and provide diversified services.