A Study On The Impact Of Financial Development On China’s Structure Of Export

Since the appearance of financial development theory, domestic and foreign scholars has focused on the relationship between financial development and economic development, but less studies on the correlation between financial development and international trade. In fact, there is a very important significance to study the impact of financial development on international trade. This paper aims to study the relationship between financial development and China’s exports to prove that financial development has a significant impact on the development of China’s export structrue. If this Impact can be proved, it can not only help China to further deepen the reform of the financial system, better guide the further development of international trade, but also promote the further development of financial development theory. Financial development not only to promote economic growth through increased investment and improve investment efficiency, but also by the impact of international trade and other sectors of the economy to influence the level of economic development as a whole, affirmed the importance if financial constitution reform for China’s economic development.In this paper, we first study the background of financial development theory and its development process, combined with the actual situation in China’s financial reform and development of foreign trade since the reform and opening up, through empirical research methods to study the impact of China’s financial development for China’s export trade stucture, as the optimization and upgrading of China’s foreign trade structure corresponding policy recommendations. In the theoretical part, we first reviews domestic and foreign scholars’research on theory of financial development and international trade, then combined with the specific conditions of the present stage of financial development and international trade development in China, briefly describes the mechanism of action between the financial development and international trade. Financial development can promote the development of the capital market, gradually improve the regulatory mechanism of the interest and exchange rates, expand financing channels for enterprises of China’s trade, reduce financing costs and improve the efficiency of resource allocation, promote the formation of the export sector economies of scale, to accelerate China’s international trade development process. In the empirical part of this paper,first we divide China’s export goods into nine categories in accordance with international trade classification standard, then select three indicators to measure the degree of financial development in China through cointegration analysis and VECM test method to study the impact of financial development for the China’s export stucture.The empirical results show that:there is long-run equilibrium relationship between nine categories commodities’export and financial development. It proves that financial development both long-and short-term optimization of China’s export trade structure has a significant impact. In addition, the co-integration analysis shows the long term, China’s exports of primary products and a positive correlation exists between financial development relationship, and financial development made for capital-intensive industries to promote exports showed effects of labor-intensive products for export trade impact cannot be precisely defined.9commodities error correction model showed that: the short term, the balance of broad money M2and financial intermediaries of the loan amount for labor-intensive exports increased role in promoting greater capital-intensive products. Financial development in terms of short and long term, for the optimization of the structure of China’s export trade has a positive meaning. Finally, this paper based on the results of empirical research, put forward the corresponding policy recommendations.