How Does Financial Development Affect The Export Behavior Of China’s Enterprises?

In recent years, China’s foreign trade shows a tendency of continuous prosperity,which has become the most notable features of this era of economic globalization. Thevalue of export increased from203.916billion dollar in1995to1.57793trillion dollarin2010, keeping the average growth rate of15.34%annual. China overtook Germany in2009, becoming the world’s largest exporter. China’s manufacturing enterprises made agreat contribution. But in recent years, with the continuous appreciation of RMB, theprice of labour and raw material continues to rise, the traditional advantage of China’sexports gradually lost, especially with the outbreak of financial crisis, China’s exporttrade is faced with lots of challenges. Therefore, how to promote China’s export tradehas become important issues. Theory and empirical evidence shows that financialdevelopment can be a source of a country’s trade comparative advantage, a soundfinancial system can make enterprise engage in export and promote the export amount.Therefore, it is worth further exploring about how to fully give play to the role offinancial development for the promotion of trade.In the aspect of theory research, first of all, through to the literature review, thisarticle found that most studies are based on the study that the current financialdevelopment affects the macro mechanism of international trade. But few literaturesstudied from the perspective of external channel of financial constraints. And most ofscholars mainly studied the enterprise participation and export amount. There are fewliteratures from the perspective of dual marginal of Multi-products enterprises to carryout empirical research. Secondly, based on the heterogeneity of enterprise trade modelof Chaney （2005）, this article explores the financial development impact oninternational trade from the external channel of financial constraints.In empirical research, this paper Mirrored the gravity model of bilateral trade flowsof Chaney（2008）, introducing financial constraints, and the interaction of financialdevelopment and financial constraints. Then established Econometric model.Considering the robustness of the model, this paper joined the control variables of theenterprise characteristics and national characteristics, and controlled the enterprise’sbinary bit industry, location, time, and corporate ownership and other fixed effects.Further, combined the Chinese customs database with China’s industrial enterprise database from2000to2006, Based on the perspective of Dual margin of Multi-productFirm, This paper used fixed effect model and Tobit model to examine empirically theinfluence of financial development in the export behaviour of enterprises.Finally, based on the existing theoretical analysis and empirical research, this paperdiscussed the formation of the possible reasons for this result, and put forward thecorresponding policy recommendations according to the results.