The Influence Of Real Effective Exchange Rate On The Export Construction Of Mechanical And Electrical Products In China After Joining The WTO

According to data released by the WTO, The import and export trade value of China ranked first in 2014 for the second consecutive years. As China becomes trading powers in the world today, the mechanical and electronic products played an important role. It is obvious that mechanical and electrical products export trade performance directly affects the development of China’s foreign trade. Mechanical and the electrical products trade catch up with textile trade in 1995 became the no.1 categories of exports. After China joining WTO in 2001, the mechanical and electronic products grew faster. According to customs statistics, in 2014 the year China’s mechanical and electrical products export trade volume is $1.31 trillion, the trade volume in 2002 was just $157.08 billion. The electrical products exports increase 718% since 2002. Mechanical and electrical industry is a pillar industry of our country, also it is an important part of our country export strategy. It is charged with promoting national income, upgrading national industrial structure and is the leader other industry reform. But its growth in exports also faced with unstable external demand, intensified trade friction. It is very urgent to improve the export competitiveness and update the export structure. In 2015 the government work report clearly puts forward the concept of "made in China 2025". The exchange rate is one of the basic elements that affect export. After our country begins to implement the exchange rate reform in 2005, RMB appreciated rapidly. And how did the appreciation affect the export structure? This is what this paper to going to study. This article combined the method of quantitative and qualitative analysis. It selected the real effective exchange rate changes which is on the basis of purchasing power parity(PPP)to study its effect on the mechanical and electrical products export structure. and then get the relevant policy recommendations. This article is divided into four chapters. The first chapter is introduction on the research background and significance, literature review, the research mentality and main contents of the paper. The second chapter studied the history and status quo of real effective exchange rate of RMB and mechanicalandelectricalproductsexportstructure.thethirdchapterappliedtheleastsquares(ols)usingtherealeffectiveexchangeratechangesrateforallkindsofproductsexportgrowthregression.afteregressionresultsareobtained,wethencalculatedtheexportstructure.wecomparedtheestimatorandtherealvalueandtriedtoexplainedtheresidualforthethem.thefourthchapteristosummarizetheconclusionfromtheabovechaptersandgivespolicyrecommendations.