A Study Of The Issues On International Trade Growth By Financial Development In The Inland Areas

Since the reform and opening up, China’s international trade has experienced along period of growth, total imports and exports of goods have been rising. Meanwhile,China’s financial system got sustained growth, and the financial aggregates have beengrowing. Since the U.S. financial crisis in2008, the growth of international trade inChina’s maritime provinces declined seriously. The growth of international trade inChina’s inland areas has a good performance because of the geographical advantages,resources and policy advantages. Therefore, financial development has a significantimpact on the growth of international trade.This paper mainly contains: Overview of the domestic and foreign scholars on thestudy of the relationship between financial development and international trade.Theoretical basis of financial development in promoting the growth of internationaltrade. Fluctuation law of financial development and international trade growth in theinland areas, we try to grasp the growth trend of financial development and internationaltrade in the inland areas since the reform and opening up. Study of the transmissionmechanism on financial development and international trade, we try to launch this fromthe point of human capital allocation, then, we try to grasp the impact on internationaltrade giving by the financial development and human capital allocation in the inlandareas by empirical test. Then, the paper presents three strategies and four paths topromote the growth of international trade relying on financial development. Finally, thispaper presents the conclusions and policy recommendations.It mainly includes the theory of economic globalization, regional economicintegration theory and comparative advantage theory of the theory about financialdevelopment in promoting the growth of international trade, other includes systemsupply theory and industrial choice theory, financial development form tradecomparative advantage and promote the growth of international trade througheconomies of scale and financial system. Based on the fluctuation law of financialdevelopment and international trade growth in the inland areas, we can learn thatShaanxi in the northwest, Sichuan and Chongqing in the southwest have a high level offinancial development in the inland areas. The development of international trade in theinland areas shows significant stage characteristics, The standard deviation of provincialper international trade in the inland areas of shows an increasing trend, while the coefficient of variation decreasing at first, then gradual upward. Theoretical resultsshow that differences in human capital allocation efficiency is one of the reasons thatlead to international trade gap, which caused by the different levels of financialdevelopment and human capital allocation, the empirical results shows that theinternational trade growth in the inland areas comes into a significant conditions betaconvergence, financial development in the inland areas does not show prominentacceleration on the growth of international trade, the scale of financial developmentdoes not accurately reflect the level of financial development. Based on these results,the paper proposes three strategies for international trade development in the inlandareas: regional comparative advantage strategy, innovation strategy of the financialsystem, clustering strategy of emerging industrial. Meanwhile, this paper propose fourpaths to promote the growth of international trade relying on financial development:building the inland economic cooperation framework, reasonable positioning inlandfinancial center, innovative development of processing trade, reducing logistics cost bymulti-channel. Finally, we summarize the conclusions of the full paper, and propose thepolicy recommendations from the coordinated development of the financial as well as areasonable strategic planning.