Financial Services Trade Liberalization And Financial Sector Development

In the 1970s, economic globalization and financial liberalization in the world seize our attention. As the economic globalization and financial liberalization, China's economy was also affected by this trend. From the economics we know that economic distortions caused by Economic Regulation, freedom lead to economic efficiency. Historically speaking, countries have financial control to protect their country's economic development in different stages of history. In today's world, developed countries have reached the benefits from the liberalization; but the developing countries like China is still facing a huge problem such as how to get benefit from liberalization. Financial liberalization at this stage is very necessary to the revitalization of our country. In the new environment, the development of the relationship between financial liberalization and economic globalization of our country is an urgent problem.Taking our development of trade and international competition capability of our finance industry as a foundation, this article has respectively carried on the empirical analysis between trade in financial service and the development of finance industry and each fact to effect finance industry, then proposing pertinent suggestions to improve the international competition capability of our finance industry.This article is divided into five parts, the first chapter is the Introduction, describes the background, theory, structure, innovation of this article. The second chapter is introducing international liberalizing trade in financial services and its correlate concept. This chapter researches the general theory of trade in financial service and effective theory of the liberalization, then analyzes the content of FSA (referring to the "Financial Services Trade Agreement") on the international liberalizing trade in financial services, financial liberalization theory. Chapter III, it comes to the conclusion that improving the competition capability of our country. Next it discusses our country and USA's reality and development trend of liberalizing trade in financial service. Chapter IV of this paper use empirical analysis between the international competition capability of our financial service industry and its influential factors, which explicitly explains the development of our finance industry that lacks the international competition capability in the overall. When analyzing the comparative advantage of our trade in financial service. At last, makes a conclusion that trade in financial service promotes the development of industry finance. Chapter V of this paper put forward the combined strategies to enhance the international competition capability of our finance industry. Under the trend of liberalizing trade in financial service, we can make more benefit and reduce more risk from the trade, and under the related of FSA, we may effectively improve international competition capability of our finance industry.