An Empirical Study Of Financial Development On China's Export Complexity

With the improvement of China's economic aggregate and the increase of export technology content,Export Sophistication is an important change in measuring the growth mode of foreign trade,and it has gradually attracted the attention of scholars at home and abroad.At the same time as China ' s trade has developed rapidly,financial reforms have also made great achievements.Whether financial development is conducive to the improvement of Export Sophistication,What mechanism does financial development affect Export Sophistication? This paper is based on this research perspective,using the export data of 29 industries in China's manufacturing industry to conduct empirical analysis based on regional research level,and explore the mechanism of financial development impact on China's manufacturing Export Sophistication.Firstly,this paper analyzes the impact mechanism of financial development on Export Sophistication.The analysis results show that financial development mainly affects Export Sophistication through direct and indirect channels,including direct financial scale,financial efficiency and financial structure.Due to the existence of adverse selection and moral hazard problems in the market,these problems lead to information asymmetry and market inefficiency,while financial systems have diversified risks,allocate market resources,and provide a series of basic functions of information.Financial development can reduce information by reducing Symmetry,decentralize non-systematic risks,optimize market resource allocation to increase Export Sophistication and promote technological progress.Secondly,this paper empirically analyzes the theory that financial development affects China's manufacturing export complexity,and uses Eviews software to construct an individual fixed effect model with variable intercept,which is obtained after conducting stationarity test,cointegration test,F test and Hausman test.The following conclusions: First,financial development can indeed promote the increaseof Export Sophistication through financial marketization,financial competition and credit rationing.For every 1 percentage point change in financial marketization,the Export Sophistication will increase by 4,535 units,and the financial competition will change by 1 percentage point.The Export Sophistication will increase by 2616 units.For every 1 percentage point change in credit rationing,the Export Sophistication will increase by 3875 Units.Second,the impact of financial development on the complexity of exports in the eastern,central and western regions is different.The degree of influence is from east to west and from west to west.Moreover,the financial development has different intercept terms for different provinces and cities,indicating that there are certain differences in the impact of financial development on Export Sophistication due to differences in geographical location or natural environment.Third,technological innovation,human capital,infrastructure investment and foreign direct investment have significant impacts on Export Sophistication.However,from a regional perspective,the impact of foreign direct investment on the eastern,central and western regions is even more pronounced.The impact of human capital investment on the central region is also significant.Finally,this paper puts forward three opinions on how to improve the impact of financial development on Export Sophistication:Implement differentiated regional financial development strategies;improve financial efficiency and break the monopoly of state-owned banks.We will liberalize financial market access,implement interest rate market-oriented reforms,improve the financial structure,and achieve multi-level and diversified and balanced development within the financial system.