Rmb Exchange Rate Adjustment And Chinese Merchandise Exports

In the last few years, RMB exchange rate question is highlighted and becomesthe focus of the world economy under the profound international background.Nowadays, the exchange rate of main countries in the world is greatly adjusted. Forexample, the Euro's appreciation and the Japanese yen's appreciation, the US dollar'sdepreciation, the depreciation of other currencies which are related with the USdollar, such as RMB; in the meantime, the China's faster growth of goods export andincreasing surplus of foreign trade. Consequently, the international public opinionaccounts the uproarsing of the china goods export for the undervaluation of RMB,which is the main reason of the uproarsing. However, does the Chinese export dependon RMB depreciation? Is the exchange rate of RMB suitable? What is the reason ofgoods export uproarsing? This thesis analyzes these questions with five parts.The first part is the preface that includes the research background of this topic,the analytical method and the structure of this thesis.The second part is to analyze the RMB exchange rate. There are three aspects:Firstly, the author to summarize the theory of PPR Secondly, to summarize andreview the research outcome on the RMB exchange rate. Thirdly, the author makesthe positive study with the theory of PPP, calculating the real exchange rate and therelative PPP, studying whether the RMB exchange rate deviates from the PPP andwhether the value of RMB is overvalued or underestimated.The third part is the positive analysis on the relationship of goods export and theRMB exchange rate. This part is described as follows: Firstly, the author studies therelationship between the RMB exchange rate and the goods export with yearly data of1990—2004.Secondly, the author analyzes the further relationship. Thirdly, the authormakes the empirical analysis on the flexibility of demands in import and export, theexchange rate and goods export with the econometrics model and regression analysis.The fourth part is to analyze the factors of the Chinese goods export uproarsing.There are mainly five factors: The first is FDI inflows, FDI can pull the growth ofgoods export. The second is processing trade, processing trade is strongly promotinggoods export. The third is the advantages of labor force cost, which is lower laborforce price and higher labor productivity. They can attract the foreign capital andpromote the development of processing trade. The fourth is the encouragement of...