Research On The Influence Of Trade Opening On Chinese Financial Development

The Foreign Trade is the "engine" of economic development and the Finance is the "core" of the modern economy.In the past 40 years of the Reform and Opening up,Chinese economy has been developing vigorously and achieving a perfect turn from a "closed" economy to an "opening" economy.Increasing its influence and taking control of the international trade and resources.It has been playing an increasingly important role in the international division of labor system.As Chinese initial idea of integrating into the global economic system was to give priority to the development of the Foreign trade and accumulate trade surplus,which lead that the development of the Finance laged behind the process of the Trade opening.Compared with other trade powers,Chinese financial development has been a certain inferior position.The development is unbalanced and the regional gap is huge.The policy system lags behind the changes of market.Trade and financial development have not been well coordinated with each other.The experience of the developed countries shows that the increasingly closed economic and trade need the support of a strong and perfect financial system.The coordinated development of the trade and finance have been playing an important role in a country.Therefore,it is necessary to carefully analyze the specific situation of Chinese financial development in the condition of the Trade opening and the impact of theTrade opening on Chinese financial development.It can be useful for us to make the targeted economical recommendations.This dissertation analyzes the scale,efficiency and performance indicators of Banking,Insurance and Securities to examine their relationship with Chinese Trade opening respectively.Firstly,it analyzes how Trade opening affects the scale and efficiency of Banking development from 1993 to 2017.At the national level,Trade opening significantly promotes the scale of the Banking development,but has a negative correlation with its efficiency.Then,the provinces,cities and autonomous regions of China are divided into three parts: the East,the Middle and the West.The results show that Trade opening significantly promotes Banking development in the East and the Middle,but doesn't have a significant relationship with the West.Secondly,because of the lack of data in the Securities,we only research the development scale and performance indicators in 2007-2018.The results show that the development of the scale and performance of the Securities is the reason of the improvement of the Trade opening.Thirdly,in view of the availability of data on the Insurance,we analyses the scale and efficiency of the Insurance in 1998-2017 and find out that although the Trade opening related to it unsignificantly,but it is the cause of the development of the Insurance scale and efficiency.Finally,based on the above empirical results and the development of Chinese conditions,thedissertation will put forward some policy suggestions about the future development of the Trade and Finance in the East,the Middle and the West.