Research On The Impact Of Financial Development On International Fragmentation Of Production In China

Since the reform and opening up,China's foreign trade has made great achievements.It is closely related to China's continuous integration into the new international division of labor,and actively participate in global economic cooperation.With the deepening of economic globalization,the economic structure also with the continuous adjustment,the new production division of labor is gradually replacing the traditional production system.Thanks to the new division of labor system,China's foreign trade has made great achievements,and has become a major trading nation.In the production of new fine segmentation network,China plays a very important role.However,limited to the reality,China in the process of production of undertaking and price negotiation has been in a passive position,undertake most of the production links belong to labour intensive sectors,the link increased value is relatively low.Therefore,although the rapid growth of China's total foreign trade,but foreign trade links added value is low,the core competitiveness is relatively weak,to enhance our country's trade value chain position produced a restrictive role,affecting the health of China's foreign trade development.In the process of China's economic development,finance and foreign trade play an important role in the process of economic development.The continuous development of the financial industry not only can promote economic growth,but also as a factor of production,it has a very important influence on the trade of a country.The on the basis of the relevant literature to undertake summing up,first of all on China's international production split level convergence tests,through China 28provincial-level administrative region of international production fragmentation level measurement,calculation results reflect,the sample period in our country's level of international production division level gap to narrow down the enlarged,but the regional fluctuations are not the same,the eastern area fluctuation minimum,central region and western region with the highest.Also in the sample period,China's international production split level there is an absolute beta convergence,without the presence of sigma convergence;there is a sigma convergence in the eastern region of China,and there is no absolute beta convergence;central and western regions of international production fragmentation level do not exist and sigma convergence and absolute convergence.Secondly,the financial development and international production segmentation into a unified framework,under the consideration of regional economic development level,the level of financial development differences,using empirical analysis to research the impact of financial development on China's international production split level,through the empirical analysis we can draw the following conclusions:(1)From the overall situation of our country,the impact of financial development on China's international production division level is more positive,and the impact of financial efficiency is greater than the size of the financial.(2)The impact of financial development on the international division of production in different regions of our country is not the same.Financial development to enhance the production in the western region segmentation level has the greatest effect,financial development scale,each increase of 1%,it will promote regional international fragmentation of production levels improve 1.06%,every 1% increase in financial efficiency will lead to regional and international production split level increases 1.31%;on the eastern and middle region is relatively small,every 1%increase in the scale of financial,were driven in the eastern and central regions and international production segmentation to improve the level of 0.19%,0.52%;every1% increase in financial efficiency are respectively driven by the eastern and central regions of international production division level increased by 0.45%,0.75%.(3)The influence of the control variables selected in the empirical analysis on the level of international production in different regions is different.For the eastern region,foreign investment in the control variable can improve the ability of the eastern region to participate in the international production division to a certain extent.For the central and western regions,the international production segmentation direction effect on the levels of certain differences exist,among them,human capital and R&D investment in the short term it cannot reflect the positive impact,and per capita GDP,the impact of foreign direct investment are also different.