Effects Of Financial Development On Comparative Advantage And International Trade Structure

Export trade structure and competitiveness in international trade(comparative advantage)does not only reflect the level of economic development of a country,but also determine its position in the international division of labor,the same is true for Jiangsu Province.Although the proportion of high-tech manufactured goods in Jiangsu Province increased substantially,these goods still do not have strong international competitiveness,because of processing trade,low technology content and added value.Therefore,in order to achieve industrial upgrading and optimization of the comparative advantages of manufactured goods,and to have a change from the export of labor-intensive,low-tech products to export capital and technology-intensive products,we need to form a comparative advantage in terms of capital and technology,and promote the formation of economies of scale,which need to accelerate the development of the financial industry in Jiangsu Province.Based on the above background,this paper uses the principle of economics,international trade theory and modern econometric methods to study the impact of financial development on industrial products trade in Jiangsu Province in the analysis of the development and current situation of industrial products in international trade finance and proposes coordination strategies to achieve the sustainable development between financial development and export trade in Jiangsu Province.The full text tells as follows:The first two chapters briefly introduces the research background,significance and methods,reviews and comb the research results about the relationship between financial development and international trade;three ways to enhance comparative advantage and international trade structure is proposed in Chapter III starting from the financial function,including capital accumulation,technological progress and economies of scale;The fourth and fifth chapters study the overall state of financial development and international trade,analyze the long-term relationships and the future impact between them using time series,co-integration test and VAR model.We can find that financial efficiency promotes the upgrading of comparativeadvantages and expanding financial scale did not achieve its role.Increasing the long-term financing support only promotes to enhance the comparative advantage of high-tech manufactured goods but inhibit the optimization of international trade structure in industrial products;This paper presents policy recommendations on how to better promote the upgrading of comparative advantage and trade structure optimization.,to play financial development’s role in promoting comparative advantage and international trade structure in Jiangsu Province.There are three ways to do that.They are improving financial efficiency,making targeted solutions to SME financing difficulties and adjusting the industrial structure.