Research On The Influence Of RMB Exchange Rate On Agricultural Price

Agricultural exports issue is not only related to foreign trade, but also related to China’s rural issues.So for the export of agricultural products is an important issue for economic research.China’s import and export of agricultural products continued deficit, and this trend is widening. There are reasons for negative agricultural imports, with the increasing growth of imports of the domestic market demand, but can not ignore the problems in agricultural exports. From the beginning of 2005, the reform of RMB exchange rate system, China adopted to implement more flexible exchange rate regime, the RMB began to appreciate. Appreciation of the RMB exchange rate directly affects China’s agricultural export prices, export prices will affect the international competitiveness of agricultural exports. Export manufacturers in order to maintain the competitiveness of the market share and exports of agricultural exports, they would choose to own a part of the exchange rate rising to digest the impact, leading exporters lower profits or even losses. Export enterprises to adjust prices according to market conditions to deal with the impact of the exchange rate, the exchange rate which will produce an incomplete pass.There are many studies about Incomplete Exchange Rate Pass. "Purchasing power parity" theory due to the limited variety of conditions, in practice is not established.Domestic and foreign scholars on this issue in-depth study can be summarized as "the city to see pricing theory", "market structure theory", "product differentiation theory" and so on. This paper studies the exchange rate issue is not completely passed. From the combination of theoretical and empirical point of view to study the effects of RMB real effective exchange rate fluctuations on the prices of agricultural exports. The article first outlines the theoretical and empirical research results.Get exchange rates on export commodity price influence of these mechanisms on the basis of the theoretical results. Combined with changes in the status of Exchange Rate System and agricultural exports.Using various data, empirical impact of RMB real effective exchange rate of the agricultural export prices.In the empirical part using cointegration test, Granger causality test, impulse response analysis and variance decomposition. Test results show that the RMB real effective exchange rate are the main factors affecting the prices of agricultural products, and the impact with a lag, the cost of production has little effect on the price fluctuations of agricultural products. Finally, the article proposes to reduce the impact of exchange rate recommendations.