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A Ampirical Study On The Trade Structure, The Real Effective Exchange Rate And Non-agricultrual Employment

Posted on:2017-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:S C NingFull Text:PDF
GTID:2297330509451460Subject:World economy
Abstract/Summary:PDF Full Text Request
China is a large agricultural country, which has a large number of labor resources. Solving the problem of employment has become the focus of attention of the people’s livelihood in the process of building a new countryside. At the same time, full employment and balance of international payments are two major objectives of macroeconomic regulation and control. The real effective exchange rate is the result of the national macro control and market interaction, and through the export trade to make effect on the non-agricultural employment, how to adjust the real effective exchange rate to affect the trade structure and promote the non-Agricultural employment, the study of the dialectical relationship between the trade structure, the real effective exchange rate and the non-agricultural employment, has great economic significance and practical significance.This paper studies the relationship between the trade structure, real effective exchange rate and non-agricultural employment, firstly, it has a simple production of economic theory, secondly, by using the annual data of three variables of 1980-2010 and the Eviews software, this paper take a test of the Grainger causality between the three variables. According to the results of its function, it is divided into three kinds of corresponding relations: short-term effect, long-term direct effect and long-term total effect.The trade structure and non-agricultural employment have negative Granger relations at all addition. According to the economic theory of trade structure and non-agricultural employment, China’s labor quality has seriously hindered the development of China’s trade structure.In the short term, there is no obvious Granger causality between the trade structure and the real effective exchange rate, which is not in conformity with the economic theory of the traditional theory. In the long-term direct and long-term effects, there is a positive Granger relationship between and the real effective exchange rate and the trade structure. Namely, the increase in exports makes the RMB appreciation, which is caused by the supply and demand in the foreign exchange market, because of the improvement of the trade structure, the demand for RMB in the foreign exchange market is increasing, the same time, the pressure on the appreciation of the RMB, which has far greater influence than the negative effection between the trade structure and real effective exchange rate. At the same time, foreign-funded enterprises accounted for a large proportion of the majority of raw materials from their home country, which have the positive effect in opposition to each other. So we should make attention to this problem, making measure against the risk of capital withdrawal, for the healthy development of China’s foreign exchange market and maintain the international balance of payments.Finally, the relationship between real effective exchange rate and non-agricultural employment in the short term does not exist Granger causality, this is because the real effective exchange rate does not directly effect the non-agricultural employment, it through various transmission mechanism,The RMB appreciation will promote the export trade to reduce the real wages,causing the reduction of the non-agricultural employment.By maintaining the stability of the value of the RMB, the promotion of non-agricultural employment can be achieved in the long term, and the people’s living standards can be improved.According to the above conclusions, this paper puts forward relevant policies and suggestions.
Keywords/Search Tags:trade structure, real effective exchange rate, non-agricultural employment
PDF Full Text Request
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