An Empirical Study About The Effect Of The Change Of RMB Exchange Rate On China Trade Structure

Since the reform and opening up, China’s foreign trade has made brilliant achievements, but trade frictions between China and its trading partners, which trade imbalances lead to, are increasing. The US-led Western countries continue to exert pressure on China’s reform of the exchange rate, and require the RMB to appreciate significantly. China carried out the exchange rate reform in2005, the RMB has experienced a sustained appreciation, it has made a certain degree of impact on China’s economy and profoundly changed our country’s trade structure. Therefore, it is of very important practical significance to study the impact of RMB exchange rate movements on China’s trade structure.This paper firstly introduces the related concepts of exchange rate and trade structure, reviews the development of international trade theory, and on this basis, we expound the theoretical foundation of exchange rate changes’s impact on international trade balance and trade commodity structure. Secondly, introduces the process of the RMB exchange rate changes and the status of China’s trade structure since the reform and opening up. Next, this paper collects the monthly data from2005to2012, uses the empirical analysis of the unit root test, cointegration test and other methods to analyze the RMB exchange rate changes’s influence on China’s trade structure.To come to the conclusion that RMB real effective exchange rate appreciation will help to improve China’s trade commodity structure. Finally, we summarize the main conclusions, and then give some suggestions on how to improve the RMB exchange rate formation mechanism and optimize China’s trade structures.