The Impact Of RMB Exchange Rate Change On Xinjiang's Export Trade

In March2012, Zhou Xiaochuan, the governor of central bank, said that weshould further enhance two-way floating RMB exchange rate flexibility in ChinaFinance. This indicated that the RMB exchange rate margin would further increase.According to the related theory of international trade, the continuous changes of theRMB exchange rate are bound to affect the international trade.This paper studies the RMB real effective exchange rate changes on Xinjiang'sexport trade, and uses the annual date of1994to2011, which includes Xinjiangexport trade date, the RMB real effective exchange rate, the trading partner country'sGDP and FDI. Then analyze on these data by Eviews7.1with Cointegration and cometo the conclusion. This multi-variable Cointegration analysis is still seldom on thestudies of Xinjiang export by the RMB exchange rate changes.The results of the analysis reveal that:1. In the long run, RMB real effective exchange rate movements on exports toXinjiang in the opposite direction of the impact, and the impact is relativelysignificant. In the short term, the RMB real effective exchanges affect Xinjiang'sexports grater.2. In the long run, the RMB real effective exchange rate changes on the primaryproducts of Xinjiang exports affect smaller impact on the export of manufacturedgoods, manufactured goods in Xinjiang exchange rate flexibility is greater than theprimary products of exchange rate flexibility.3. In the long run, the real effective exchange rate changes on the general trade,border trade is very significant, Xinjiang's border trade exports of RMB real exchangerate changes is greater than the general trade exports suffered impact.