Research On The Transmission Mechanism Of RMB Real Effective Exchange Rate Affecting China 's Employment

Since the reform and opening up,China's economic development is rapid,gross domestic product is currently ranked second in the world.Foreign trade continues to grow,foreign investment continues to flow and the continuous improvement of employment situation caused a certain appreciation pressure on RMB exchange rate.Under the open economy,exchange rate fluctuations will have a different impact on the economic development and employment of a country.Therefore,in terms of the appreciation of RMB currently,It is great practical significance to study the direct impact and indirect impact of RMB real exchange rate fluctuations on the employment of various industries in China.Firstly,the article elaborates the theoretical influence of the exchange rate on the employment through the transfer mechanism of foreign trade,asset-liability ratio transmission mechanism,foreign direct investment transmission mechanism and money supply transmission mechanism.Then,using ADF unit root test method,multiple linear regression,ARDL model to test the direct effect and indirect effect of RMB real effective exchange rate change on employment.Finally,it concludes the conclusion and puts forward relevant policy suggestions.This paper concludes that the improvement of gross domestic product is beneficial to the development of employment in the country,secondary industry and tertiary industry,which is not conducive to the development of primary industry employment.The appreciation of the real effective exchange rate of RMB is not conducive to the development of national employment.Under the influence of import trade transmission mechanism and foreign direct investment transmission mechanism,its negative effect is weakened,and the negative effect is expanded under the influence of export trade transmission mechanism.The appreciation of the RMB real effective exchange rate has a direct and indirect positive impact on the employment of the primary industry.RMB real effective exchange rate appreciation is not conducive to the secondary industry,the tertiary industry employment,especially for foreign trade dependence on the larger enterprises and the use of less foreign direct investment companies,so to avoid the RMB real effective exchange rate in the short term substantial appreciation,to reduce the degree of dependence on foreign trade,and actively use foreign direct investment.