Empirical Study on the Relationship of Financial Development and Foreign Trade in China： 1978-2007

摘要

Based on the Chinese data of 1978-2007,we studies the relationship between financial development and foreign trade using senior econometrics methods and modern statistic analytic techniques such as JJ cointegration test in VECM and ALMON Models. Empirical analysis shows that financial development and international trade have a stable long-run equilibrium relationship. The scale of financial development remarkably promotes the growth of foreign trade. We also find a strong effect of the financial sector on optimizing the structure of exported commodities， and the export growth of industry manufactures can promote the efficiency of financial development in short-term. However, the impact of the growth of foreign trade on the scale of the financial development is weak.