The Study On Influence Of Financial Development Differences With China And The U.S. Current Account Imbalance

In recent years, the financial structure of the world economy has undergoneenormous changes，imbalance of the world economy into the perspective of scholars.Previous scholars from the point of view of the import and export more studies ofthe current account imbalances, and standing in the macroeconomic perspective onthe issue is very rare look. China’s current-account surplus has its particularity. Theanalysis is divided into theoretical and empirical two parts, in a macroeconomicperspective, the issue of financial development, a more systematic exposition ofChina’s financial development, especially the comparison between China and theU.S. financial development exists differences, and thus study its impact on Sino-UStrade, and on this basis, focuses on the impact of the Sino-US financial differencesbetween china and the U.S. current account imbalances.Firstly, in this paper, according to the previous studies, by drawing on the theoryof financial development, this paper is divided into theoretical and empirical analysisof the two parts which studies the China’s financial development and current accountimbalances relationship. respectively from the financial efficiency, financialinnovation three angles to study the financial development factors on the mechanismof the effect of the current account; Second, to our country current accountimbalances and the current situation of the development of our country’s financialproblems are briefly reviewed, lived in China’s financial structure, financial efficiency,financial innovation three there is insufficient;Secondly, in empirical research, this paper firstly constructs can reflect thefinancial structure, financial efficiency and financial innovation of the three financialdevelopment indicators, using VAR model has a co-integration analysis, then thevector error correction model in 1990 and 2010 and China’s financial developmentand current account balance the relationship between the empirical research.Conclusion points out, China’s financial development and current account balanceexist between co-integrating relationships, financial development in the currentaccount balance is the granger reasons, but the reverse conclusion is not established. Itshows that China’s financial development to promote current account balance of greatrole. Finally, according to the theoretical and empirical study results, the twocountries with financial development present situation and its difference, proposed the relevant policy Suggestions to stimulate the two countries often project the purpose ofbalance.Finally, at the context of economic globalization, financial developmentperspective as a new research perspective, the traditional current decided on theneglector of financial development factors is a useful supplement to explain Chinaand the U.S .current account imbalance is a more stronger evidence. Meanwhile thispaper to finance the development of recommendations for improving Sino-US currentaccount imbalances, and has a strong practical significance.