Analysis Of Effect On China’s Export Commodity Structure By Finance Development

Finance and foreign trade are two important subjects in the process of China’seconomic development, research of effect on China’s export commodity structure byfinance development can help us to explore the relations between finance and foreigntrade, put forward policy recommendations to improve the composition of exportgoods from the angle of finance development, and at the same time, provide newthoughts for finance development.This article firstly analyzes the mechanism: capital accumulation andtechnology progress, through which finance development impact a country’s exportof capital and technology-intensive goods, and eventually influence this country’sexport commodity structure. Then this article divides finance into policy-basedfinance and commercial finance, respectively analyzing the effect on exportcommodity structure by their development. And through Johansen co-integration test,comparing the effect on the ratio of export of China’s five kinds of export goodswhich is primary commodity、labor-intensive and resource-based manufactures、manufactures with low skill and technology intensity、manufactures with mediumskill and technology intensity、 manufactures with high skill and technologyintensity by different finance indicators.Research indicates that whether policy-base finance or commercial finance bothcan optimize the mix of export commodities, and indeed promote the export ofmanufactures with medium and high skill and technology intensity, moreover,commercial finance can rationalize the interior structure of labor-intensivecommodity which under the rough classification, all these prove the positiveconnection between finance and foreign trade. Comparing the power of effect,financial intermediaries can most improve China’s export structure, indicating thatindirect financing still plays an important role in China’s financing system, but theeffect of stock market is limited, as there are high listing standards in the main boardmarket and speculation idea still prevails among investors, so we can only expect theresult of growth enterprise market. The influence by venture capital and export credit is relatively medium, but as traditional manufactures still own certain proportion inventure capital and China’s venture capital remains to develop, so the effect ofventure capital has large improving room.Last, this article put forward policy recommendations from the angle offinancial intermediaries、financial market、venture capital etc., looking forward topromoting the improvement of China’s export commodity structure.