An Empirical Study On The Relationship Between Financial Development And Foreign Trade In Shandong Province

The findings of a study of regional financial development and foreign trade, is one of thehot research topic in economic circles in recent years. In the process of world economicglobalization and integration, financial and foreign trade gradually become a core and impetusin the process of modern economic development, financial development and internationaltrade, infiltration and promote each other, promote the formation of a single global market.Shandong province as the third economy in China, the financial development has bee n in abackward state. They become the development level of financial industry in Shandongprovince further economic take-off vestigial wings, has affected the sustainable and healthydevelopment of the economy in Shandong province. On August7,2013, article22ofShandong province proposed the financial reform, the pace of financial development has beencleared. In the transition of economic structure in Shandong province as the research object,analyzing the internal relation of financial development and foreign trade, in Shandongprovince at the present stage of economic development and financial development request,has important practical significance.In this paper, the theory of financial development, foreign trade theory, on the basis ofprevious literature summarizes financial development on the promoting effect of foreign tradeand financial inhibition effect on foreign trade barriers. From two angles of vertical analysisand horizontal comparison, the scale and efficiency of the financial develop ment in Shandongprovince, Shandong foreign trade development of the scale and structure dynamic description,found that the scale and efficiency of the financial development and foreign trade inShandong province on the longitudinal development, there were obvious in Shandongprovince for a long time there is a big trade surplus, foreign trade commodity structure inShandong province, the proportion of manufactured goods is much higher than that ofprimary goods, export commodity structure is optimized, slowly. But in comparison with thatof the Jiangsu province and Zhejiang province in the analysis, found in Jiangsu province andZhejiang province’s financial scale is much higher than in Shandong province, and the gap ismore and more big; For efficiency of financial development, financial development efficiencyof Zhejiang province is constantly improving, fluctuated to a certain degree of financialdevelopment efficiency of Shandong province, and in widening gap, financial developmentefficiency of Jiangsu province belongs to the backward position in the three provinces. Through on the relationship between the financial development and foreign trade volumein Shandong province and the relationship between financial development and the structure offoreign trade in Shandong province are unit root test, cointegration test and granger empiricaltest, selecting financial ratios, insurance market development level, and three indicators tomeasure the credit conversion of financial development in Shandong province, with theforeign trade dependence index to measure the total foreign trade, with manufactured goodsexports accounted for the proportion of total exports to reflect the structure of foreign tradesituation, found that financial development and foreign trade volume and has a long-termequilibrium relationship between foreign trade structure, raise the level of financialdevelopment can drive the increase of the total foreign trade and the improvement of thestructure of foreign trade. On this basis, this paper put forward the policy recommendations,in Shandong province to further promote financial reform, accelerate the process offinancialization, so as to promote the development of foreign trade and economic growth inShandong province.