The Research Of Financial Development's Effect On The Optimizing Export Structure

In the “Post Financial Crisis” and “New Normal” Era, optimizing export structure and upgrading trade transformation are significant challenges China is confronted. The research shows that financial development as one of important factor endowments, just as the capital and labor factor, can affect the export structure. The study of financial development's effect on the optimizing export structure has theoretical significance and practical significance. On the one hand, introducing the financial factor into the traditional international trade theory can broaden the sources of comparative advantage. On the other hand, it provide a new path to realize the export structure optimization through the financial development.Financial development as one of important factor endowments, just as the capital and labor factor, can affect the export structure. The capital and technology intensive industry has characteristics of high investment and high risk compared to the labor-intensive industries, so it need more external financial support. The country with high level of financial development can alleviate the demand of external financial support of the capital and technology intensive industry and provide the financial support with a lower cost. Then it can form the comparative advantage dynamically of the capital and technology intensive industry and finally affect the export structure. The country with high level of financial development has the comparative advantage in the capital and technology intensive industry compared to the country with incomplete financial system, so it will produce and export the capital and technology intensive product and finally optimize the export structure and upgrade the trade transformation.Based on reviewing previous research literature, in-depth analyzing the mechanism of financial development's influence on exports of high-tech products, The paper found the “Financial Ecosystem Diversity” index from the point of bionics to evaluate the species richness and uniform distribution of the financial institution. Then using of China's provincial data during 2005-2014, this paper studies the effects of financial ecosystem diversity on the export structure. We find that the development of the financial ecosystem diversity significantly optimizes the export structure, and it is also the threshold of financial size which affects the export structure. Only when the financial ecosystem diversity exceeds a certain number, can the financial size affect export structure. So, to optimize the export structure, we should relax market access of financial institutions to enrich the types of the financial institutions and to promote the formation of the financial ecosystem diversity.