An Empirical Study On The Effects Of Financial Structure Optimization On China's Export Comparative Advantage

Since the appearance of financial development theory, domestic and foreign scholars has focused on the relationship between financial development and economic development, but less studies on financial structure and the correlation between international trade. In fact, there is a very important significance to study the impact of financial development on international trade. This paper aims to study the relationship between financial structure optimization and China's export comparative advantage, and try to prove that financial structure optimization has a positive impact on China's export comparative advantage. If this relation can be proved, it can not only help to confirm the importance of financial reform to China's economy and promote this process, but also guide the further development of export trade.In this paper, we first study the background of financial development theory and comparative advantage theory, combined with the summary of other related research. Secondly, this paper select series of index to measure China's financial optimization status, and analyze the degree of financial structure optimization by specific conditions in different period. Also, we calculate the China's export comparative advantage index of nine categories of export commodities which is classified by SITC, as well as the specific analysis on the change since the reform and opening-up. Finally, during empirical part, we establish the econometric model according to traditional comparative advantage theory, then detect the impact of financial structure optimization on export comparative advantage through co-integration analysis and Granger causality.The empirical results show that:there is a long-run equilibrium relationship between three index of financial structure and nine comparative advantage index of export merchandise. It proves that financial structure optimization has a positive effect on some export goods, especially for the capital-intensive products. Based on these results, this paper put forward the corresponding policy recommendations.