A Study Of The Effect Of RMB Exchange Rate On Trade Structure In Yangtze River Delta

After reform and opening up to the outside world, Chinese economy has integrated into the world economic development constantly, and the connection between China and the world becomes more and more closer. China’s foreign trade develops rapidly, which enhances China’s trade status in the world and makes China become global trading power. Yangtze River Delta, which acts as the first major economic regions of China’s foreign trades, is important portal and an important global trade manufacturing origin in the Asia Pacific economy. In the preliminary stage of Yangtze River Delta’s trade, it depends on its superior geographical location, abundant funds and low labor costs to make its trade develop rapidly. And its products are competitive in the international market, which makes its total import and export in the first place of the whole country. But in the last few years, with the advent of the rising labor costs, environmental pollution and other issues, the Yangtze River Delta’s foreign trade has faced many challenges. The Yangtze River Delta’s backward industrial structure and trade structure has hinder the development of trade. The Yangtze River Delta’s trade commodity structure is always in the low end of industrial chain, and its regional trade structure is excessive concentration, which gradually reduces the trade profit and hides a lot of economic risk. So it is very important to promote the optimization and upgrading of trade structure in Yangtze River Delta.For the past few years, with the continuous improvement of the RMB exchange rate system, the appreciation of RMB has experienced a series of processes, which make the choice of RMB exchange rate system and the transformation of trade growth mode become the hot spot of economic development. On the one hand, the fluctuation of RMB exchange rate influents the domestic and international economic. On the other hand, it has a significant impact on the foreign trade and trade structure of Yangtze River Delta. This text based on the actual situation and practical challenges of Yangtze River Delta trade development to study the relationship between RMB exchange rate and the trade structure change of Yangtze River Delta. Firstly, this text the related concept of trade structure and the relationship between exchange rate and trade, which establishes the theoretical basis for the full text. Next, this article analyzed the development, current situation and existing problems of Yangtze River Delta’s foreign trade and trade structure in the past20years. On the basis of modal analysis, this article chooses RMB effective exchange rate index as the explanatory variable, and makes an empirical test for the relationship between RMB effective exchange rate and trade commodity structure, trade structure and region structure of foreign trade of Yangtze River Delta. The final research shows that the trade structure of exchange rate and the delta exists cointegration relationship. With the appreciation of the RMB, the trade structure of Yangtze River Delta are improved. In the process of appreciation of the RMB, the low-end product export trade has been contained, and the processing trade exports at the bottom of the industrial chain has been reduced, the concentrated regional trade structure has been eased. In the last, on the basis of the empirical analysis, this paper presents the relevant policy recommendations about the optimization and upgrading of trade structure of Yangtze River Delta.