The Calculation Of Industry-Specific Effective Exchange Rates And Its Effects On Export Trade

Under the background of economic globalization, the relationship between exchange rate and export trade of become research hotspot among scholars all over the world. Since July 21, 2005, People's Bank of China officially launched the reform of the exchange rate and execute the managed floating exchange rate system. Since then the RMB exchange rate has continued to upgrade with large amplitude. China, as an export country, wants to ensure international market survival ability of export enterprises, but this is a great challenge in the face of exchange rate appreciation in the international context. In the previous studies, most of them take the national level of the exchange rate as a variable to study the impact of exchange rate fluctuations on export enterprises. However, this method ignore the heterogeneity of export competition between export industries.Based on the chosen of the main trade countries, major export industries, trade-weighted and price level reduction index, we construct 19 industries'industry-specific nominal effective exchange rate in 1.2004-1.2016 and 10 industries'real effective exchange rate in 3.2004-1.2012, comparative analysis the differences between industry-specific nominal effective exchange rate and national effective exchange rate, and explain the reason why different industries in the face of exchange rate appreciation reflects different export competitiveness. Then, using OLS regression model to estimate the influence of the industry effective exchange rate and the national level effective exchange rate to export. In addition, in the empirical analysis of this paper, we not only comparative analysis the difference effect to export volume of validity between the industry effective exchange rate and the national effective exchange rate, but also the two difference effects on the export price. From both horizontal and vertical comparison, this paper finds a new idea which contrary to the previous conclusion that the effective exchange rate of the industry level generally have a higher explanation of export volume and export price than national level effective exchange rate. And in the comparative analysis of industry-specific real effective exchange rate and industry-specific nominal effective exchange rate, we find they have a dislocation validity to the export industries. Again, through the analysis of the coefficient of effective exchange rate on export price, this paper prove the incomplete exchange pass-through(ERPT) generally exist in all industries, and illustrates the difference incomplete exchange rate transfer between different industries. Finally, though the comparison of the effects of different data frequency of exchange rate on the export, this paper come to a conclusion that high frequency data reflect more incomplete ERPT to export price relative to low frequency data, and explain the incomplete ERPT which is caused by the menu cost and price stickiness...