Study On The Effect Of Financial Development On Export Trade Of Jiangxi

Financial development theory has showed that financial development canaccelerate economic growth in a country or district through optimizing capitalallocation. And the international trade theory has argued that international trade is animportant engine of economic growth. Through the international division of labor canoptimize trade the allocation of resources of both sides and promote economic growth.As the two principal themes of economic development, financial development andinternational trade play an important role in economic growth. In recent years, therelationship between the two has become the hot issues in academic circles. However,most researchers have studied in the point of country, and the others focus on somecertain districts. All focus on the developed area of finance and international trade,such as Zhe Jiang and Jiang Su province. While the developing area, especially thecentral region are not fully researched. In the paper, we will make a comprehensiveanalysis on the influence on export trade by financial development of Jiang Xiprovince in the guide of financial development theory and foreign trade theory andthe metering method.This paper first reviews the related literature at home and abroad, and thesedocuments are briefly introduced, analyzed, compared and reviewed. Then, itintroduces briefly the financial development and international trade theory, andelaborates the effect of financial development on international trade and mechanismof action on macro and micro perspective. On macro scale, it demonstrates financialdevelopment can influence the scale, the relative price of manufactured goods andcapital intensity to influence the development of its export trade through modelanalysis. On micro scale, it analyses the specific way that financial developmentinfluence on the export trade development, that is scale economy, diversification,financing cost reduction, technological development promotion and so on. In realevidence, this paper selects the scale and efficiency of the financial index and exporttrade scale and structure index, and two models were constructed based on the data ofJiangxi province in econometric analysis. The result shows that the scale of financial development in Jiangxi province has no positive impact on the scale of export tradebut on the optimization of export trade structure. The enhancing of efficiency offinancial development in Jiangxi province promotes the development of the scale ofexport trade, but the impact on the export trade structure does not stand out.Finally, based on the status quo of Jiangxi province and the research conclusion,the paper have put forward the corresponding policy recommendations on thefinancial development, so as to promote the development of export trade in Jiangxiprovince...