The Impact Of Exchange Rate Changes On The Structure Of Export Commodities In Jiangsu Province

Exchange rate is the most important comprehensive price index used in international economy transaction. It executes the function of transforming price during the international finance and international trade. Exchange rate has a significant impact on trade balance and domestic economic. After the implementation of reform and opening policy, the RMB exchange rate deeply influence China's international trade. However, in the process of RMB steadily and minor dynamic appreciation, it is not enough to research the total trade balance only, which is also cannot reflect the difference among all kinds of products. So we should pay attention to commodity structure.Since the reform and opening up, the economic pattern of Jiangsu Province successfully changed from closed-end type to open-end type. Foreign trade is getting sustained and stable development. Both the expansion of export and the export commodity structure got significant progress. However, there is certain distance to achieve goals. Finding a breakthrough in optimizing export structure of Jiangsu Province has great practical significance to Jiangsu Province and China.Firstly, the article analyzes the RMB exchange rate movements and trends after the reform and opening up. Secondly, according to primary products, manufactured products, high-tech products, machinery and electronic products, textiles and clothing categories, we compare the proportion of exports and trade Competitiveness Index between Jiangsu Province and Guangdong Province. Studies have shown that export structure of Jiangsu Province have initially upgraded, but compared with the structure of Guangdong Province is still not reasonable. In the empirical analysis, selected 1995-2009 RMB real effective exchange rate and trade partners GDP as the independent variables, it carried out VAR models and impulse response analysis to measure the short and long-term influence about the fluctuating of RMB exchange rate and foreign demand to exports. Finally, combining theoretical analysis and empirical results, it put forward related policy recommendations about the restructuring of export. It should improve products'technology and added value to achieve the export of goods from the "Quantity" to "Quality"...