A Research On The Influence And Countermeasure Of RMB Exchange Rate Fluctuation Towards Export-oriented Economy Of Qingdao

This paper studies on the impact of RMB exchange rate on export-oriented economy in Qingdao. On the basis of the analysis on the procedure of trade and foreign direct investment in Qingdao, includ ing the central, provincial company, the paper using the regression analysis analyzes the impact of flu ctuation of exchange rate ontrade and foreign investment in Qingdao since2000.The empirical results show that if the RMB real effective exchange rate depreciate by1%, Qingdao export income can increased by0.936%. similarly, if RMB real effective exchange rate1%appreciation will make Qingdao export income decreases by0.936%. The correlation coefficient is0.163and it is very significant. And the demand of import is relative to the real effective exchange rate change, the lastic value is1.456.If RMB real effective exchange rate depreciate by1%, Qingdao’s import can reduce1.456%, on the other hand, if the RMB real effective exchange rate appreciate by1%, Qingdao import will increase1.456%, and the correlation coefficient is0.217and is very significant. The change of RMB exchange ra changes te on Qingdao foreign investment has significant influence, at the same time, the rate of depreciation can make Qingdao trade balance improved, on the contrary, exchange rate appreciation will worsen Qingdao trade balance. Through the model results, the changes of RMB exchange rate the influence of foreign direct investment is significant, if the RMB rate revaluates, the Qingdao foreign direct investment will increase. Its influence is small, because influence coefficient was only0.09.This paper is divided into five parts:1, To elaborate the related theory and reference literature review, mainly on the research at home and abroad as well as some general rules of the exchange rate affect the economy.2, the general rule that how the exchange rate affect the economy and some other corresponding theoretical basis.3,To analyzed and summarized the reasons for the appreciation of yuan and the impact of RMB appreciation on China’s economy.4, An Empirical Study of the RMB exchange rate movements on the Qingdao Foreign Trade and Foreign Investment.5, To avoid the impact of the RMB exchange rate changes and put forward some related policy recommendations.