| China has already become the world largest manufacturer and exporter with an important role in the world. Exchange rate act as the bridge for international trade. Obviously, exchange rate fluctuation has great influence on the export companies. So how do exporters react to exchange rate fluctuation. This essay will discuss later. On the basis of extensive and intensive margins, divided export total values into export destination, export varies, export overlap and export depth. Analyze the reaction of the export companies from those aspects.Moreover, give definition of pass on trade companies and export core product skewness,analyze the change of these behaviors.In order to solve these questions, first give clear definition of these variables. Summarize the related essays and give conclusion of those. Based on the above,construct the model for the following regression. Then combine the two main databases, China Customs Data and China Industry Business Performance Data. Calculate the index for the model. After the regression, we can see that when Renminbi exchange rate appreciated,it had a negative for export companies behavior, including export total values, export destination, export varies and export depth. In the beginning, the export prices of companies would decrease. Due to the elasticity of demand,the export quantity would see a down trend. Then export overlap would go upwards. In order to see the true situation of the export behaviors of companies, give definition of pass on trade, on the basis of the above regression, analyze the reaction of the export skewness. It was calculated as the representative variable for export companies super star product. From the results,we can see that when Renminbi appreciates,the skewness would go up. This may because that in order to survive,the export companies would focus its materials to export products that can brought back more profit. Finally based on the above results, we give advice for the government. |
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