Financial Development, External Finance Dependence And Export Of China’s Industrial Manufactured Goods

In the process of the deepening of economic globalization, finance and trade has always been the important factor to promote the development of global economy. All countries’financial markets are developing and deepening, so with the trade structure. In an opening economy, the relationship between a country’s financial development and trade structure, and its impact on macroeconomy is increasingly prominent. With China’s accession to WTO, and the opening of financial market, the development of financial market and the optimization of trade structure has become two important topics in the process of sustainable and balanced development of China’s economy.Based on previous research, by considering external finance dependence and asset tangibility index, I use26manufacturing industries data of China from2002to2009, in order to investigate the relationship between the maturity of Chinese financial market and the export of different industries. It turns out that external finance dependence and asset tangibility are the key link of financial market development and international trade. Because of technological intensity, different industries’dependence on external financing is various, as well as the degree of financing difficulty, financial development has diverse effect on the export of these industries. In the empirical study on China, I mainly distinguish the different effects of the scale and efficiency of financial development on export. Empirical results show that financial market development has significant positive effect on those industries, which has a higher external finance dependence and a lower asset tangibility, but the influence of scale and efficiency of financial market is different.