The Influence Of The Interaction Between Export And Finance On China 's Industrial Structure

China became the biggest exporter country in the world in2010.China’s total export volumn increased from325.6billion dollars in2002to1898.3billion dollars in2011,whose compound annual growth rate of export reached20.1%. The amazing performance of export dwarfed that of financial development despite of the progress that financial markets have achieved. The financial markets still face some problems.For example,most of the medium and small firms are excluded by the financial markets.The financial products cannot meet people’s demands.Our economy and industrial structure are effected by the uncoordinated development of export and finance. Considering the uncoordinated development of export and finance,we assume that export will play a diminished role in promoting industrial structure if export cannot interact with finance well.The paper explains the mechanism of the interaction between export and finance to industrial structure at first,and try to confirm the point by the empirical tests.The paper employs the panel data of31provinces in China from1997to2008.Three indexes are used to measure the rationalization and supererogation of industrial structure.Because industrial structure is influenced by various factors,we add technology,FDI and human resource to the empirical test.We come to the conclusion by the fixed effects empirical tests that export plays a diminished role because of the bad intercation between export and finance.Therefore,we suggest that the financial markets reform is extremely urgent.