Empirical Studies Of The Rmb Exchange Rate Changes On The Economic Impact Of Hunan

With the development of global economic integration, various countries and regional areas' forein trade has become more and more frequent. As one of the important factors of influencing foreign trade, the exchange rate inevitably has a significant impact on national and regional economic growth, so the research of economic impact of the exchange rate volatility is paid close attention to all countries and areas. In the context of Chinese export-oriented economy and central areas growing, as a central province of exporting machanical and electrical products, steel, non-ferrous metals and agricultural products as the main export commodities, Hunan's export-oriented economy is also growing up. The research of the impact of RMB exchange rate volatility on Hunan, will benefit Hunan's industrial structure optimization and economic growth.In the method of standardized analysis and empirical analysis , this paper anaylyzes the impact of RMB exchange rate volatility on Hunan import and export trade and foreign direct investment from the current account and the capital and financial account, and draws a conclusion-the RMB real effective exchange rate has a stable long-term equilibrium with Hunan foreign trade payment and foreign direct investment. The rising of RMB real effective exchange rate is unfavorable for developing Hunan's foreign trade and attracting foreign investment. In additon, this paper also analyzes the impact of RMB exchange rate volatility on Hunnan GDP, and draws a conclusion-the RMB real effective exchange rate has a stable long-term equilibrium with Hunan GDP, the rising of RMB exchange rate and the increase of RMB exchange rate volatility will both result in Hunan's GDP decreasing. and is bad for Hunan's economy growth. At last, this paper summary the conclusions the paper drew ahead.