Research On Impact Of Fluctuations Of Exchange Rate On Chinese Industrial Structure Advancement

Since the reform the RMB exchange rate system in 2005, the appreciation of the RMB exchange rate has an significant impact on economy what has aroused widespread concern in China . At present the formal study laid particular emphasis on the analysis in the impact on economic growth, international trade and employment,but seldom linked the fluctuation of RMB's exchange rate with industrial structure and district structure.But the exchange rate as a price variable plays an important role in the adjustment of industrial structure, because of its impact on international trade and capital flows,. In view of this, this paper focuses on the impact of fluctuation of the RMB exchange rate on China's industrial advancement.First this paper carried out the theoretical and mathematical analysis of the impact of exchange rate on the industrial advancement under the opening conditions. The paper carried out the channels of the exchange rate that impact on industrial structure:foreign trade and FDI, as the logical starting point for this paper. Then this paper established a mathematical model to analyze the four important factors that affect the industrial structure adjustment.In addition, as the disparity of China's regional economic is remarkable, this paper also analyzed the regional differences of industrial advancement when exchange rate changes.After conducting the theoretical analysis, this paper made an Empirical Analysis of the impact of exchange rate fluctuations on the industrial structure of advancement. This paper used panel data to analyze the impact of REER fluctuations on China's industrial structure advancement and the difference of the three major economic zones.Then this paper also made a quantitative analysis of the channel mechanism.In the Final part, this paper give the conclusions and policy recommendations. According to the theoretical analysis and empirical results, we believe that the real exchange rate appreciation is conducive to the development of China's high-tech industries. And the exchange rate has significant influence on the high-tech export and FDI, but the impact on the high-tech imports is not significant. The article ends with policy recommendations to promote the advancement of China's industrial structure.