Impact Of Financial Development On Export Trade From A New Economic Geography Perspective

The nineteenth report stated that " to deepen the reform of the financi al system,to enhance the ability of the economy of financial service entiti es,to cultivate new business models for trade,and to advance the construc tion of trade powerhouses ".The new economic geography model propose d by Paul Krugman(1991)based on the dynamic analysis of economic ac tivities based on increasing returns to scale,monopoly competition,and el ement space can introduce finance as a type of production factor into the model,and provide more insight into the relationship between financial de velopment and export and trade,guide empirical studies,and provide imp ortant references for policy making,with certain theoretical and practical i mplications.This study set out from the 19 th report,the 14 th and 5 th internation al trade high quality development plan,and the 20 th report in combinatio n with the actual situation of our financial and foreign trade development,to elaborate the research background and design the research framework.By reviewing the research related to fi nancial development and export tra de,comb the research status and fi nd out the research perspectives.Draw ing on previous studies and gathering data,the current situation of financi al development and export trade is analyzed in terms of the dimensions of financial scale,financial structure,financial efficiency and export scale,a nd export structure,respectively.In the theoretical analysis,we analyze th e mechanisms underlying the general effects of financial development on export trade in five aspects: capital accumulation,technological progress,financing costs,risk dispersion,and economies of scale,and based on this,we decompose financial development into factors such as financial size,f inancial structure,and financial efficiency,construct a new economic geo graphy theoretical model to analyze the effects of financial development o n export trade and conduct simulation experiments;In terms of empirical study,we refer to Hausmann et al(2005)to explore the effects of financia l size,financial structure and financial efficiency on the export trade size a nd export trade structure,and we choose the province level panel 2007-2021 data to conduct the full sample benchmark regression and the heteroge neity grouping regression.It is found that:(1)on the overall level,the expansion of export size and the upgrade of export structure can significantly benefit from financia l development.Financial scale mainly plays a facilitative role on the expo rt trade scale,financial structure mainly plays a facilitative role on the exp ort trade structure,and financial efficiency exerts a suppressive role on the level of export trade structure.(2)At the regional level,the impact of fi n ancial size on the size of export trade is consistent with the overall level,with the impact on export structure being signi fi cantly positive in the cen tral region and inhibitory in the western region;Financial structure mainly plays a facilitating role on the export trade structure of central regions;Fi nancial efficiency has a significant inhibitory effect on the export scale an d export structure of central China.Based on the empirical results and analysis,the relevant policy recom mendations are put forward:(1)moderate expansion of the financial scale to meet the demand for export trade;(2)Enhance inter regional financial collaboration and improve the construction of financial systems;(3)Opti mize the financial structure and broaden the channels of export trade finan cing.The possible innovation points are that some innovation is conducted in the theoretical analysis to introduce financial development into the new economic geography theoretical model,the mechanism of the impact of f inancial development on export trade is analyzed in the dynamic perspecti ve,the effect of financial development on export trade is judged with the help of numerical simulation simulation method trends,and the relevant i ndexes are constructed for empirical examination using provincial panel d ata,with some innovativeness.