The Impact Of Fluctuation Of Exchange Rate On The Adjustment Of Industy Structure Of Theyangtze Rivereconomic Zone

As the indictor to evaluate the price of commodities and services in the international market, exchange rate has been exerting positive impact on the economic growth and import and export industry of a country. Plenty of foreign and domestic scholars attempted to study the impact of change of exchange rate on economic growth and industry structure, hoping to gain more knowledge on improving the efficiency of economic growth. In current economic circumstances, demand greatly determines supply. From the perspective of industry, the impact of market on industry structure is very obvious, which also proves that change of exchange rate will influence the industry structure indirectly. The Yangtze River Economic Zone traverses the east, middle and west region of China and this region is an important driving power for China’s economy. Meanwhile, the economy of China has entered a crucial stage where the reform of exchange rate and upgrade of industry structure are necessary. This is why this paper chooses the Yangtze River Economic Zone as the object to study the impact of change of exchange on the adjustment of regional industry structure.This paper firstly states related theory and literature reviews. And then some analysis on the evolution and status quo of the Yangtze River Economic Zone has also been made. In terms of empirical study, this paper divides the whole region into 3 parts: the Upper Reaches of the Yangtze River, the Middle Yangtze River and the Yangtze River Delta region. In addition, an empirical model has been built based on the classical model created by Chenery and Sal Quinn. Based on this model, ADF test, co-integration test and Granger Causality Test have been conducted to research the impact of change of exchange rate on industry structure of the Yangtze River Economic Zone.The result shows that there are some differences among the 3 regions. Because the Upper Reaches of the Yangtze River is located in inland, the export-oriented economy is not strong. Perhaps this is the reason why the impact of exchange rate on industry structure in this region is not obvious. According to the empirical result, the impact of exchange rate on industry structure in the Middle Yangtze River is obvious owning to the strong reliability of the secondary industry. There is no doubt that the result proves the close link between exchange rate and industry structure.In the last part, this paper puts forward some practical suggestions on the basis of theoretical analysis and empirical analysis.