The Study On The Impact Of Fluctuation Of RMB Exchange Rate On The Employment Of Manufacturing Industry

The influence of RMB exchange rate on china’s economy is verifiable. The debate among wide-ranging classes about how to regulate the fluctuation of RMB exchange rate to meet the need of the country’s development is increasingly heated. And as an important goal for both economic and social development, full employment is always one of the hot pursuits of Chinese government. As the most important industry in China, manufacturing industry plays the major role to the solution of urban employment. Being confronting with the appreciation of the RMB and the increase of unemployment rate, the study about whether there is relationship between exchange rate and employment and how the fluctuation of RMB impact on china’s employment is of great theoretical and practical significance.Based on the previous researches home and abroad, firstly, the paper explains the characteristics in the research of this paper. Secondly, it introduces a series of concepts about exchange rate and employment, including nominal and real exchange rate, real effective exchange rate, labor force and so on, it also reviews some classical theories, models and possible transmission channels by which the change of exchange rate can affect employment. Many research results prove that the impact is in terms of both structure and quantity. The third chapter focuses on the description of the present situation or major problems of fluctuation of RMB exchange rate and China’s employment, especially the circumstances of chinese manufacturing industry’s employment. The fourth chapter begins an empirical analysis based on panel data of27manufacturing industries in China from1999to2009. Finally, according to the econometrics results, the paper comes to some conclusions and proposes some suggestions on policy.