A Study On The Impact Of RMB Real Effective Exchange Rate On Import And Export Trade In Rizhao City

With the deepening of the global economic integration, the countries’ foreign trade becomes more various, the influence which exchange rate change makes on the economic development of all countries is increasingly prominent. Real effective exchange rate is different from the nominal exchange rate, it not only considers the multiple comparison between a national currency and trading partners currency, but also eliminates the influence the factors such as inflation make on domestic purchasing power of money. So it can more comprehensively reflect the real value of their currencies, and more research on the influence which the changes make on the foreign economy in the country or region has far-reaching practical significance.Since reform and opening up, Rizhao gives full play to the advantage of its location,continuously participates in foreign economic exchanges and cooperation. The extroversion degree enhances unceasingly, and the economic develops rapidly, the influence which the RMB real effective exchange rate changes makes on its economic development is more significant.The purpose of this paper is to adopt the method of combining qualitative analysis with quantitative analysis, together with the present situation of Rizhao city nearly 15 years, from two dimensions that import and export trade flows, import and export trade structure, and this paper analyzed the specific impact that the RMB real effective exchange rate changes makes on Rizhao city import and export trade, and puts forward relevant policy suggestions.This article put the relevant datas of the import and export trade in 1994-2013 in process the relevant data and adjust the RMB real effective exchange rate that BIS calculated into annual average, and made them into fitting regression model. It concluded that the RMB real effective exchange rate changes to Rizhao export trade influence elasticity coefficient is 5.94, the import trade influence elasticity coefficient is 11.25, the appreciation of the RMB deteriorates Rizhao city import and export trade, and the RMB real effective exchange rate changes is the main factor in Rizhao export trade changes. The effect between RMB real effective exchange rate changes and Rizhao import trade structure was not significant, but it is the main factor of export trade structure change. Through the analysis, it concluded that the RMB real effective exchange rate appreciation will deteriorate Rizhao import and export trade, but can optimize Rizhao export trade structure, and puts forward relevant policy suggestions.