| Economic growth theory generally emphasizes the factor affect economic growth directly. For example the factor of capital, labor, technology, etc. However there are many important factors that affect economic growth indirectly.Exchange rate is one of the core elements in an open economy.Since July21,2005, RMB exchange rate is no longer pegged to the U.S. Dollar.China announced a switch to a managed floating exchange rate regime, which based on market supply and demand, with reference to a basket of currencies. The evolution of RMB exchange rate regime tends to shift to a more flexible exchange rate regime.According to the theory, a country’s currency appreciation would adversely affect the national economy. On the contrary,the scale of Jiangxi’s foreign trade and the foreign investment is growing while the appreciation of RMB.So we need explore the relationship between the exchange rate and the economic growth of Jiangxi Province. This paper is on the empirical analysis of this issue.This paper has five sections. The first chapter is an introduction to present background of research paper,writing intentions, the article structure,innovation and weaknesses and previous researches.Since reform of the RMB exchange rate in July2005, the RMB exchange rate continually evolution to study its impact on economic growth in Jiangxi Province.Secondly, summing theoretical and empirical research which have a relationship with exchange rate pass-through effect and economic growth to clarify the current status of research.The second chapter introduces the theory of exchange rates and economic growth, highlighting the impact of exchange rate transmission mechanism theory of economic growth.The third chapter introduces the economic development in Jiangxi Province, features and advantages. The fourth chapter focuses on the analysis of the RMB appreciation empirical analysis of economic growth in Jiangxi conduction path. In this paper, the exchange rate of economic growth in Jiangxi Province pathways into export channels, foreign direct investment channels and inter-provincial transfer of investment channels, respectively, to explain their theories and conduction mechanism.analysis framework of empirical methods structural vector autoregression model. VEC model on the basis of the establishment of a unit root test and Granger causality test and inspection over Johnhansen considering the impact of exchange rates through different paths to economic growth Chapter five policy recommendations section of this article. The result showed that the appreciation of the RMB will not reduce the exports of Jiangxi Province but the growth rate will decline in exports of Jiangxi Province and the exports has a strong impact on economic growth in the long run. So the RMB appreciation will not be an obstacle to attractting foreign direct investment,RMB appreciation would lead to increased investment in Jiangxi province,it will also promote economic growth.With the help of empirical analysis, the paper will put forward some policy suggestions:First of all, focusing on improving the technological content and quality of export products, eliminating primary processing products, Optimizing and upgrading the industrial structure, supporting numbers of high-tech industries, enhance independent innovation capability of the overall economy; Given the impact of tax rebate policy to Chinese export products,Government departments should gradually reduce the export tax rebate policy efforts, especially to those numerous Waste of resources, and environmental pollution products. Second, trying hard to create a harmony economic environment and institutional environment. Third,improving traffic conditions, carrying on infrastructure,providing ancillary services,and taking full advantage of incentives of rise of Central China,declaring actively national strategic plan, such as economic zone planning of Poyang Lake.with the support of central policy,to develope the economic of Jiangxi Province. |
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