Effects Of Changes In Exchange Rate On Trade Between China And Japan

Currency conversion as a price index, the economy of each country on the international market closely together in the international trade market plays an important role, it is the most important regulator of a country’s trade balance, the most direct means of one. Our exchange rate system in different historical periods, on the development of foreign trade plays a different role. RMB exchange rate regime of the Sino-Japanese trade is also different periods show different characteristics. With the third since 2005, "the reform", the RMB exchange rate formation mechanism more market-oriented, the development of relations of exchange rate changes and foreign trade increasingly close, the exchange rate regime will affect more and more deeply into the country’s foreign economic relations and in development Day trade.From the theoretical and empirical aspects to discuss the impact of exchange rate changes on Sino-Japanese trade. First, in accordance with the development of the theoretical part of the order of time, one by one discusses the various historical periods the greatest impact on the exchange rate trade theory and analysis highlights the elasticity theory; secondly, discusses the price transmission process of exchange rate changes, respectively, and indirectly from two angles to explore directly the prices conduction effect of exchange rates on import and export trade; and finally, the historical stage since the founding of New China is divided into several different times, and each comb each period exchange rate developments and the Sino-Japanese trade, we can see that our country’s exchange rate regime impact on Sino-Japanese trade has gone from basic reform and opening up is not associated with more closely related. Collected empirical part of China and Japan from July 2005 to December 2013 since macroeconomic data, and these data unit root test, cointegration and Granger causality analysis, and measure out the import and export use OLS method exchange rate flexibility, test out the import and export exchange rate flexibility and 1.171577, respectively- 0.412189.In the final paper, according to the results of the empirical results from the national income, real exchange rate and the elasticity of the three aspects of the empirical results were analyzed and summarized, and on this basis, the actual date of trade in the presence of issues and in the context of the increasing appreciation of the renminbi, put forward the corresponding countermeasures.