The Study About The Rmb Exchange Rate’s Influence On China’s Industrial Structure High-grade

It has been nearly six years since the RMB exchange rate reform was carried out in July2005. RMB exchange rate has experienced a constant appreciation in the next5years. The RMB fluctuation of exchange rate deeply affects all the aspects of china’ s economy, and also has drawn wide attention. After the financial crisis happened in2008, U.S. dollar’s international status has been slowly weakened, partly due to the Treasury and the Federal Reserve has taken quantitative looser monetary policy. Meanwhile, instead of United States, the European Union and other countries and regions became China’s largest trading partners, their economic connection with China become increasingly close. Lots of China’s researches analyze the exchange rate fluctuation’s influence on certain economic variable, mostly with respect to foreign trade, economic growth and so on, but rarely focus on industrial structure level. So this paper’s main work is to clear up relative theories, and it gives detailed discussion about how exchange rate fluctuation affected the industrial structure from the aspects of quality and quantity.This article includes four chapters:the first chapter is the introduction section, mainly introduces the background and significance of the research, research status from domestic and abroad, research methods and main content, innovations and difficulty, the exchange rate related concepts and three industries structure evolution rule. The second chapter is theoretical analysis and model introduction; it describes the theory of the impact of RMB exchange rate on the development of China’s economy and relative high-grade co-integration model. Chapter three is the key part of this study, namely empirical analysis process. At the beginning, it corrects the traditional model by adding new variable. Based on the corrected model, it analyzes the impact of the foreign trade and foreign direct investment’s fluctuation on the real effective exchange rate. Then it discusses the impact of RMB exchange rate fluctuations on the structure of the three industries and the internal and spatial distribution structure of the second industry in China’s eastern, central and western regions. Based on the empirical results, the fourth chapter draws some conclusions and proposes some policy suggestions. Firstly, it summarizes the empirical analysis results, and then it puts forward the relevant policy suggestions and points out the shortages and possible improvement in this paper.