The Impact of China’s Financial Development on Industries’ Export Products’ Technology Level Analysis
|Keywords||Financial development Export technology level Enterpriseheterogeneity External financial dependency|
In2008, the financial crisis from the United States led to the global economicdownturn. In the influence of the financial crisis, China’ international trade volumedeclined severely in2009and appeared on a trade deficit of7.24billion dollars,reflecting the deterioration of China’ terms of trade. Therefore, financial developmenthas significant influence on a country’s international trade, which has also beenwidely recognized by the academic circles. In transition period of China’ economy,the quality of financial development needs to ascend, the efficiency of financialsystem is still low, and the financial structure needs to be further optimized. At thesame time, we should advance the export technology level and improve theinternational competitiveness of our export products. Hence, we need to study therelationship between China’ financial development and the technical level of exportproducts; understand the role that the financial development plays to promote exportproducts’ technology level; clear the direction to deepen financial reform and useeffective financial measures to promote the export enterprises’ technology innovation.These studies have very important theoretical and realistic significance to advance ourexport quality and improvement of economic growth.In the theory study, this paper reviews existing theories which financialdevelopment influences on international trade. In the base of these theories, weconstruct the enterprise heterogeneity model according to the difference of enterpriseexternal financial dependency on different industries. And we analyze and state theinternal mechanisms and the transmission mechanism on the influence that financialdevelopment plays on export technical level in one country.In the empirical study, this paper combines financial development and exportproducts’ technical level through the external financial dependency. Using27segmentation industries’ panel data of China’ manufacturing from1994to2009, wemake empirical analysis on the influence that financial development plays to thevarious industries’ export technical level. This paper calculates various industries’export technical level on the base of the Rodrik (2006) and makes empirical analysison different influences that financial development plays to industry export technicallevel using financial scale, efficiency, structure these three levels’ six indexes. Andthis paper makes investigation on the different external financial dependency industries’ samples. The conclusion is that: the advance of financial developmentlevel significantly promotes the ascension of China’export technology level. But thefinancial development scale, efficiency and structure have different functions on theexport technical level and have different functions on different technical level ofindustry.Through the theoretical and empirical analysis, combining the current situationof the financial system in China, this paper puts forward four suggestions to promotefinancial development and improve our export technology level. They are:establishing perfect multi-level financial market system, optimizing the financialmarket structure, strengthening the financial industry’s competition; developing andperfecting risk investment system to promote endogenous technology progress,making variety of industry policy of financial support.