The Impact Of Financial Development On China’ Export Growth Binary Marginal

Since the1990s， China’s exports maintain a rapid growth trend， by2009，China has become the world’s largest exporting country． But in recent years， withthe acceleration of the appreciation of the RMB， labor and raw material prices arerising， the traditional advantage of China’s exports began to weaken， shrinkingexternal demand which result from the financial crisis in2008， these factors result inexport growth started to slow down， China’s export trade is facing seriouschallenges． Therefore, the measures taken to further promote the growth of China’sexports go to become to be an important research subject for us．The theoretical andempirical research to prove that financial development can be an important source ofcomparative advantage of a country’s trade， a sound financial system for enterprisesto overcome the fixed costs of the export financing， thereby increasing the exportvolume and export orientation． At present，most of the scholars from the perspectiveof the total volume of trade and trade structure analysis of the relationship betweenfinancial development and export trade， few scholars to explain the relationshipbetween the two from the perspective of the binary margin．In theoretical research，firstly the paper comment the literature from the angles ofthe binary margin and the influence of financial development on binary margin；thenfollowed in the heterogeneity of trade theory established by Chaney (2005) weanalyze financial development’s influence mechanism on trade binary margin: on theone hand the deepening of financial development can help export enterprises toovercome liquid constraints resulted from the export fixed costs， which can promoteextensive margin of growth， on the other hand it can promote innovation ofenterprises to drive business productivity improve， thereby enhancing intensivemargin of growth export．In empirical research，I use2000-2009HS6digit micro trade data，and to learnfrom Hummels and Klenow (2005) decomposition method to calculate the Chinaexport’s binary margin to19major trading partners as well as the different types ofproducts export marginal，regardless of the national level or product type level ofChina’s export expansion mainly rely on the intensive margin．On this basis，the paperconstructs the three index of financial development’s scale，efficiency and structure aswell as the use the method of panel-data model and quantile regression to test theimpact of financial development and trade costs，productivity，multilateral resistance， foreign direct investment and financial crisis on China exports’ dual marginal．Thestudy found that: the scale，efficiency and structure of financial development canpromote binary margin significantly，the impact of financial development on theintensive margin is much greater than the impact of the extensive of marginal，withbinary marginal distribution by low to high-end，the impact of financial developmenton the extensive marginal rendering down then up，wheras trend on the intensivemargin showing a decreasing trend，other factors also showed different mechanismsfor binary margine，especially labor productivity’s impact on dual margine showingthe characteristic of the inverted U-shaped "．Finally， on the basis of previous findings we put forward targeted suggestions，which provides an important reference for how to stabilize the growth of China’sexports to enhance the competitiveness of China’s trade．...