An Research On The Response Of China’s Export Price To The RMB Exchange Rate

Exchange rate plays an very important role in a country’s development ofinternational trade.It is an important factor affecting the production costs and theprices of export goods.The influence of exchange rate pass-through is an Importantresearch topic. We’ll found some correlation through analyzing the relationshipbetween the RMB exchange rate and exports prices. Through the mechanism analysisbased on market structure theory and an exchange rate pass-through model,there is aphenomenon of incomplete pass-through and it is affected by the targetmarket elasticity of demand and exporters’ pricing capability.After series analysisbased on monthly data of exports prices amd the RMB exchange rate,the thesis drawsa conclusion that the phenomenon of incomplete pass-through also is found in China’sexporters.The thesis constructs a national panel data models and a industry paneldata to make empirical analysis and concludes that the impact of the exchange rate isdifferent in various industries and countries.In general,the degree of impact is deeperon industrial products than primary products,and deeper on the key target marketsthan others.There are some reasons to explain the phenomenon, including lesscompetitive of exports, exporters’ weak pricing capability,etc.. In order toimprove the competitiveness of our products and deepen the influence of theRMB exchange rate,we must consolidate and strengthen the RMB exchangerate reform, upgrade the industrial structure, expand market demand, encourageto pay in RMB,ect..