The Research On The Sino-US Economic Imbalances Based On The Perspective Of Financial Development

Global economic imbalances refers that one country’s current account deficitscontinue to maintain a large number, while other countries which are trading with thecountry produce large trade surplus. After the War Ⅱ, the world economy appearsthree serious economic imbalances. The United States has always been the currentaccount deficit country on the end of the balance of economic imbalances,nevertheless, the surplus country will continuously change in the process of theeconomic imbalances. At the same time, the economic imbalance between China andthe United States has different characteristics with the former economic imbalanceswhich were occurred between US and Germany as well as US and Japan. At present,the Sino-US economic imbalances have constituted the core of global economicimbalances. The Sino-US economic imbalances has its own feature and content whichis distinguished from the imbalances of other economies.The article compares and analyzes the current situation of Sino-US financialdevelopment and economic imbalances. In the context of the economic and financialglobalization and the transferring of U.S. industry, the article explores to research therelationship between financial development and the Sino-US economic imbalancesbased on the status of the two countries in which the international division of labor. Inthe empirical analysis, we use the Cochrane-Orcutt iterative method to analyze therelationships between financial development and the Sino-US economic imbalancesfrom1990to2012. And then we look at how the U.S. industrial restructuring affectson the U.S. trade deficit with China.In this paper, theoretical analysis and empirical studies show that in the contextof economic and financial globalization and the transferring of U.S. industry, theSino-US economic imbalance is the imbalance of international division of labor andallocation of benefits under the effect of the two country’s comparative advantage inits manufacturing and financial area and is also a natural reaction caused by Sino-USdifferences of comparative advantage in the process of economic globalization. Chinashould base on its actual development and promote the reform of economic andfinancial strategy in real time to cope with risk of imbalance.