A Study On The Effects Of Financial Development On Exports Of Goods In Shanghai

In the development of modern economy, finance plays a very important even decisive role; To a large extent, international trade affects a country or region’s economic growth, technological progress, and the improvement of people’s living quality, thus, to study the impact of the financial development on international trade displays strong practical significance. To solve this problem, the author firstly in-depth analyzes the ways and mechanisms of financial development affecting international trade, followed by the empirical analysis of the impact of financial development on exports of goods in Shanghai. Studies show that financial development does play a great impact on international trade, which is especially apparent when concerning the impact of the efficiency of financial development on the structure of exports of goods, pursuant to which the author gives policy recommendations for financial development.In the theoretical analysis, based on the theory of general trade theory, various factors that constitute the comparative advantage in international trade are analyzed, and then financial development, as a new factor, analyzing how it forms the comparative advantage in international trade. Basic functions of financial development are to overcome the problem of asymmetric information, and thus able to mobilize savings, improving the allocation of resources, reduce risk, and ultimately the formation of capital accumulation, promote technological progress, affect international trade. At the same time, through the use of institutional economics relating with transaction costs and system, from the point of view of financial needs specific to international trade activities, financial development as the evolution of a system is described to be able to meet the various financial needs in international trade activities, promoting the expansion of exports.In the empirical analysis, the impact of financial development in Shanghai on exports of goods is selected to be studied, measuring the scale and efficiency of financial development, scale and structure of the exports of goods. The empirical results show that financial development in Shanghai can effectively improve the status of the exports of goods, especially the improvement of the efficiency of financial development acting on the structure of exports of goods, increasing the proportion of capital-intensive products and high-tech products in total exports of goods. Finally, according to the results of theoretical analysis and empirical analysis, the author gives some recommendations on policy such as improving financial regulations and financial supervision system, strengthening the development of non-state-owned finance.