Research On Changes In Rmb Exchange Rate And Adjustment Of Industrial Structure

Economic restructuring and the mode of economic growth changing is a problem which it must face to achieve sustainable development of our country, and the country must act in accordance with this objective law in economic development. Since the Chinese reform, in an open economy, it cannot be neglected that the upgrading power of industrial structure of our country has come from the external sector. As an important price variable, the changes in RMB exchange rate will act on Chinese internal economy through the trade structure, export prices and capital flows. This thesis discusses the relationship between economic growth path and the exchange rate changes, analyses the inner drive on the industrial restructuring adjustment coming from the appreciative pressure on RMB, and represents the exchange rate impacts on the mode of economic growth changing.This paper describes the evolution of the RMB exchange rate and the objective reality of Chinese industrial structure to study the process of export-oriented economy and the formation of differences between the internal and external departments productivity. According to the Balassa-Samuelson model, it researches whether the characteristics of economic growth model and industrial structure are the inner driving force of changes in RMB exchange rate. In the process of research, the paper focuses on the mechanism and pathway of changes in exchange rate acting on Industrial Structure in the long run, and analyses the mode of action from the current account and capital account respectively.In the process of economic development, Chinese export structure has undergone significant changes. Export trade changes from resource-intensive products into the labor-intensive products, and then is mainly based on technology-intensive products. Chinese domestic industrial structure is also accompanied with the change of structure of trade, and the changes in RMB exchange rate originates at the same time. Based on the current account, the paper reviewed the evolution of the RMB exchange rate, made a Correlation Analysis of foreign trade structure and fluctuation in REB real exchange rate. Meanwhile, based on the analysis of pass-through effect of exchange rate, this paper structures a theoretical framework to explore the mechanism. According to the analysis by means of VAR, it finds out that the appreciation of the RMB exchange rate has more adverse impacts on the prices of labor-intensive commodities. The appreciation of the RMB exchange rate adjusts the structure of export commodities objectively; In consideration of the capital account, it discusses the relationship between FDI and industry structure in China, and use the mathematics tool of Cointegration and Error Correction model to analyze the real example about the relevant relation between the data of FDI and RMB exchange rate of 1994-2009 in our country. The result of study indicates that the appreciation of the RMB exchange rate promotes the readjustment and optimization of own industrial structure.