The Effect Of RMB Appreciation On Productivity Of Manufacturing Industry In China

Through thirty years of reform and opening up, Chinese manufacturing industry achieved rapid development, the growth rate ranks first in the world, greatly promote Chinese economic development, but also for global economic growth has made important contributions. However, in recent years the development of Chinese manufacturing industry is faced with falling demand, rising costs and increasingly complex international and domestic situation, while in the background of the increasing appreciation of the RMB, how to continue to promote increased productivity and maintain manufacturing development and promote industrial upgrading is our country urgent practical problems to solve. Based on the theory of oligopolistic competition, were constructed Cournot model and price competition mechanism under Bertrand model of competition under production, while taking advantage of Chinese manufacturing industry1999to2011data estimation methods, construction panel data model, trying to solve two problems:(1) to explore whether the appreciation of the RMB would affect the productivity of the manufacturing sector, how it affects the mechanism.(2) Whether other significant factors exist. The results showed that:(1) the impact of RMB appreciation on Chinese manufacturing productivity is more significant, different exchange rate may increase also may reduce productivity.(2)The number of firms in the manufacturing industry, there are also impact on productivity levels. Based on this, this paper considers the current exchange rate of RMB is still undervalued exchange rate has not yet reached the level of productivity improvement can promote optimal range, the level of productivity of the manufacturing sector is still room for improvement. Put forward corresponding countermeasures and suggestions:(1) the current impact of R&D investment on productivity effects have not yet appeared, to increase investment in research and development activities is still very important.(2) Manufacturing enterprises in the development process should pay attention to consider the impact of yuan appreciation brings,select the appropriate investment to achieve higher productivity.(3) In the process of industrial upgrading, as appropriate eliminate or merge with some lower productivity of the enterprise, to improve the overall productivity of the manufacturing sector is important.