Research On The Impact Of Financing Constraints On Trade In Value Added Of The Chinese Manufacturing

Under the background of economic globalization and integration,China's export scale has grown rapidly.According to statistical data from the World Trade Organization,China became the world's top exporter in2015.However,how much national factor income contained in China's export volume under the global division is still a question.At the same time,China's financial development level is still relatively backward compared to developed countries,and whether the level of domestic added value of export trade will be affected by financing constraints is also worthy of attention.Based on the literature review about the domestic added value of export trade and financing constraints,this paper divides the domestic added value of export trade into four parts from the perspective of industrial added value,that is labor income,operating surplus,net production tax,and the annual depreciation.These four components are added together to obtain the domestic added value of export trade without containing those belonging to foreign capital export.On the selection of financing constraints indicators,this paper constructs three financing constraint indicators including information about interest expenses,cash flow and commercial credit.By using data from 28 sectors of manufacturing industry in the China Industrial Statistics Yearbook from 2005 to 2014,the paper give a descriptive statistics about the domestic added value of export trade and financing constraints respectively.On base of the deduction of the mechanism relationship between financing constraints and the domestic added value of export trade,an econometric model is built to conduct empirical analysis to examine the relationship between domestic value added of export trade and financing constraints.The main conclusions of this paper are as follows:(1)External financing constraints have no significant effect on the domestic added value of export trade;(2)Internal financing constraint value,ie the proportion of cash flow to total assets,positively affects domestic added value of manufacturing export trade.,which is mainly attributed to that the reduction of internal financing constraints will greatly enhance the industry operating surplus.;(3)The commercial credit financing constraint has a significant negative effect on the domestic added value of manufacturing export trade by inhibiting industry profits,which seems more obvious in the capital-intensive manufacturing industry.