The Empirical Research On The Effects Of The Fluctuations Of Exchange Rate On The International Competitiveness Of Manufacture

In the end of 2014, the strategy of establishing the economic zone of the Silk Road and Maritime Silk Road in the 21 st Century is preparing for the globalization of Renminbi. Chinese managed floating exchange rate system prompts the fluctuations of Chinese exchange rates from 1994. While the growth rate of Chinese economy transits from high level to middle-high level, changing exchange rates of RMB to USD have more important effects on the economic development. Manufacture is a main industry of the exporting industries, which is affected more apparently. This paper researches exchange rate of RMB on the impact of manufacturing global competitiveness.Firstly, this essay concludes the domestic and foreign literatures of the definition of international competitiveness, the methodologies of assessing international competitiveness and the influence on the international competitiveness by the exchange rate of RMB. Secondly, it analyzes the typical indicators of international competitiveness in the worldwide. Then, it introduces the development of manufacture and calculates the revealed comparative advantage index of the 27 industries of manufacture and compares them with each other. The results show that the RCAs of labor-driven industries are lower than usual, while the RCAs of high technology-driven industries are higher than usual. The economic datum of 27 industries of manufacture from 1992 to 2012 are used to analyze the impact on international competitiveness by the exchange rate while RCA is dependent variable, real effective exchange rate, labor cost, scale of the industry, inter-competitiveness between industries are independent variable. It shows that the appreciation of RMB lower the international competitiveness of manufacture.