Research On Relationship Between Export Trade, RMB Exchange Rate And Export Rebate

Export rebate is an important party of tax system, which means that government should refund the value-added tax and consumption tax to the export enterprises in order to make them take part in a fair competition in the international market. As an important policy tool to regulate the export trade, export rebate began to be implemented formally by our government in 1985, which has achieved remarkable results to encourage expansion of exports and foreign exchange earnings. RMB exchange rate policy is also a key economic instrument during the activities to regulate the foreign trade, which can affect domestic economic activities and the balance of foreign trade. Obviously, the effect of export rebate on the export volume is similar to the one of RMB exchange rate policy. There is the necessary to research and analyze the relationship between the two policy instruments. General speaking, RMB exchange rate is an instrument of monetary policy, which influences the export trade through a variety of channels. Moreover, the effect is continuous and will spread to the whole economy level. In contrast with RMB exchange rate policy, export rebate is a financial instrument, which has a good structure and is easy to control.With the global economic crisis continues to deepen and the new trade protectionism is becoming increasingly serious, China's foreign trade is facing many serious challenges. If we can deal with the relationship between export rebate policy and RMB exchange rate policy, we can set up a good co-ordination mechanism and the optimal mix, which will maintain the vitality of foreign trade and resist great challenges brought by external shocks.This paper firstly shows the status quo of export rebate policy in our country, and then analyzes the role of export rebate to promote export trade. In the next, this paper compares the impact, mechanism of export rebate policy and RMB exchange rate policy. Meanwhile, this paper also measures the relationship between export rebates, RMB real effective exchange rate and export trade through a combination of qualitative and quantitative methods. The empirical results show that two types of policy instruments have great influence on export trade, and RMB exchange rate policy has greater effect. Finally, this paper proposes combination principle, frameworks and specific implementation strategies to coordinate the two policy tools.