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The Influence To The Import Trade Agricultural Products That Comes Form The Change Of The Exchange Rate

Posted on:2012-06-01Degree:MasterType:Thesis
Country:ChinaCandidate:Y LiFull Text:PDF
GTID:2269330398992877Subject:Finance
Abstract/Summary:PDF Full Text Request
China is an agricultural country, agricultural products’circulation takes a key position in the commodity economy of China. Import and export of Chinese agricultural products is developed quickly at a stage of it’s growing size and strength, particularly since July2005. At that time, China began to implement a new system of exchange rate, which based on the market supply and demand, reference of a package of currency regulation. The system called managed floating exchange rate system, that is to say, the RMB exchange rate floating range increases, we can easily see that prices of agricultural products will be affected by the international products. That China’s import and export agricultural products is under the influence of international agricultural prices.During these, the trade between China and American is the most important.Because agricultural trade takes a very important position in the economic trade relations between China and US. Besides, with the amount of the trade deficit of China to the United States increased year by year, soybeans as a major source of trade deficit. But at present, domestic soybean prices significantly higher than import soybean, soybean prices hung upside down at home and abroad prompting processing companies have selected import soybean. At the same time, several food companies are expanding capacity in the area of the lower soybean processing, resulting in soybean imports surge. It seriously affected the development of domestic soybean trade.The research content of this article is that the impact of RMB exchange rate on the import trade in agricultural products, take importing United States soybean for example. This article first reviewed related literatures.Then, understanding its level and insufficient, make a foundation for our research; The second part of this article is to analyze the effect to the trade comes from the change of exchange rate. Next, on the basis of this article in the previous section, examine the characteristics of China’s agricultural products trade and trading conditions. In this part, we use simple chart qualitative analysis. Next is empirical research component, this article takes soybean imports and price, domestic market product price as samples, analysis trade between China and United States from2005-2010. Papers selected Chinese imports United States soybean price, quantity, and price of domestic products and their substitutes,"real exchange rate" as an argument, use the volume indices as the dependent variable, using multiple linear regression method in econometric data analysis. The conclusions of this article are: analysis shows,"the real exchange rate" significantly influence on China soybean imports, appreciating exchange rates will have an impact on trade practices, will reduce the imports of this period. By the empirical study above, we can find that the RMB real effective exchange rate against the dollar and import number of China comes from the United States is negative. That is, increase exchange rate, reduce imports. Finally this article on the theoretical analysis and empirical test on the basis of the above summary and proposed on the China-US trade structure optimization of soybean in China on currency policy recommendations.The imports of soybeans in China is the largest, with agricultural products meeting the most, and soybean economic internationalization and globalization was an irreversible trend, in the case of Chinese soybean demand continues to grow, enhance the competitiveness of China’s soybean, reduce reliance on imported soybean to improve Chinese bean agriculture income, is the goal of development of soybean industry in China.
Keywords/Search Tags:change of the exchange rate, soybean market, import trade, cointegration test
PDF Full Text Request
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