Study On The Influence Of RMB Exchange Rate Changes On The Yangtze River Delta Economic Zone’s Industrial Restructuring

Since the exchange of the rate reform, the pace of the appreciation of the RMB continues to accelerate, by the end of October 2014, exchange rate fluctuations of RMB against the U.S. dollar is 1:6.14, compared to 2005 appreciation rate reached 25%. Changes in the RMB exchange rate is large affects the China’s price level, import and export commodity structure and domestic consumption and investment structure directly. Thus it affects China’s trade structure.In a certain extent, it also has an important effect on the change of the industrial structure of our country.Firstly, this paper combs and reviews the theoretical on basis of exchange rate and industrial structure. Then, according to the relevant data of the industrial structure development of Yangtze River Delta, a comprehensive analysis of the adjustment process of the Yangtze River Delta Economic Zone industrial structure. Secondly, this paper takes the market internal and external demand as the main route, analyzes the way of the RMB exchange rate on the export and foreign direct investment. Again, based on the provincial panel data from 1990 to 2013 this paper established VAR model and test the exchange rate and the Yangtze River Delta Economic Zone industrial structure including stationary test, cointegration test, Granger causality test and pulse analysis and variance analysis etc. Empirical analysis the exchange rate movements impact of the Yangtze River Delta Economic Zone Industrial Structure Adjustment. Finally, based on the theory and the relevant policies, we tried to suggestions for the adjustment of the industrial structure of the Yangtze River Delta economic zone.Through our analysis, we show that the exchange rate has a positive effect on the industrial structure of China. RMB real effective exchange rate can be adjusted by foreign direct investment and the Yangtze River Delta economic zone opening degree to affect the Yangtze River Delta Economic Zone Industrial Structure adjustment. In addition, the optimization of the industrial structure is currently mainly reflected in the proportion of the third industry in China, with the proportion of second industry decline. Exchange rate on the first and second industry of the Yangtze River Delta Economic Zone is negative, impact on the third industry is positive, it suggested that the China’s Yangtze River Delta the upgrading of the industrial structure policy had have a preliminary effect.