Research On The Influence Of RMB Real Exchange Rate Appreciation On Technology Transaction

Since China started the reform of exchange rate formation mechanism in 2005,the real exchange rate of RMB has appreciated significantly,while the exchange rate appreciation caused import rises and export reduction,which brought competitive pressure to Chinese enterprises.This moment,enterprises only through enhancing technological innovation to reduce product costs and improve product quality to gain competitive advantage in trade.However,the vast majority of China's trade goods are produced by small and medium enterprises,and the technical strength of most enterprises is not enough to implement independent innovation.In this case,using the external scientific and technological resources,such as technology market,to implement the development of technology,has becoming the innovation path that enterprise can choice.Technology transaction as an important part of technological innovation,measures the scales of technical development,technical consultation,technical service and technical transfer,which the demand side can acquire with compensation in the technology market,and describes the enterprise's level of using external scientific and technological resources to implement technology innovation.In this paper,we investigate the relationship between real exchange rate and technology transaction,and reveal the behavior of enterprises to implement technological innovation under the condition of exchange rate appreciation.This paper has made the following contributions.First,it studies the effect of exchange rate change on the technology transaction,and has the innovation in the research content of technological innovation.Scholars in the study of exchange rate movements on the impact of technological innovation,mainly discuss the input-output behavior,such as research and development expenditure,patent application and so on,in the system of technology innovation,and less research on technology transaction which promotes technology to achieve industrialization and commercialization.A clear understanding of the impact of exchange rate appreciation on technology transaction is helpful to provide a theoretical basis for the formulation of exchange rate policy.Second,this paper discusses the different effects of exchange rate appreciation on the implementation of technology transaction for domestic and foreign enterprises,which is another innovation.Exchange rate appreciation will enhance the purchasing power of RMB and raise the price of export goods,which will lead to import increased and export reduced.While domestic enterprises and foreign enterprises have different technology endowments and technology sources,therefore,domestic enterprises and foreign enterprises will take different technical transaction activities.Third,the use of panel threshold technology to test the impact of import and export trade on the technology transaction has the exchange rate threshold effect,which is the innovation of this paper in the research method.The exchange rate as a monetary policy tool,can directly reflect the change trend of external economic,it should be as the threshold variable to observe which technology transaction behavior of enterprises in the exchange rate situation through the trade channel.On the basis of literature review on the relationship among exchange rate,trade and technological innovation,this paper firstly analyzes the characteristics of RMB real exchange rate and the change of China's technology transaction.Then,according to the actual situation of technological innovation of domestic enterprises and foreign enterprises,theoretically analyzes the impact mechanism and effect of real exchange rate appreciation through the import and export channels on the technology transaction.Finally,based on the provincial panel data of China in 1997-2014,by respectively using the PVAR model and panel threshold model,the causal relationship between real exchange rate and technology trade,and real exchange rate threshold effect of technology transactions are studied.The results are as follows.First,the increase in imports brought about by real exchange rate stability or real exchange rate appreciation,especially the increase in intermediate goods trade,can generate technology spillover,and significantly promote the technology transaction.Second,the exchange rate appreciation brings export reduction,squeezing the export enterprises operating profits,and enterprises can reduce the production cost and improve the product structure through technological innovation,rebuilding a new export competitive advantage,exchange rate appreciation through export channels also significantly promoted technology transaction.Third,domestic and foreign enterprises through export channels to the extent of the role of technology transactions are different.The export competition caused by the appreciation of the real exchange rate can force the foreign enterprises to increase the technological innovation,and significantly promote the technological innovation.Although the sensitivity of domestic enterprises to the real exchange rate appreciation is strong,the effect of promoting the technology trade is not significant.Although the sensitivity of domestic enterprises to real exchange rate appreciation is strong,the effect of promoting technology transaction is not significant.Fourth,the exchange rate depreciation or excessive appreciation have a negative effect on technology transaction,only when the exchange rate appreciation rate within 1.6% per year,import and export trade could significantly promote the implementation of technology transaction,stable and strong exchange rate policy is conducive to the transformation of scientific and technological achievements.The historical observation of the effect of exchange rate changes on the technological exchange,found that exchange rate appreciation through international trade channels can significantly promote the technology transaction,which has a very important theoretical significance for the future development of monetary policy.Therefore,in order to better play the role of exchange rate adjustment in import,export and technology transactions,we suggest that the reform of the formation mechanism of the RMB middle price should be gradually diluted with the single exchange rate fluctuations of the dollar,strengthening the multilateral significance in the process of RMB internationalization,more fully and accurately reflect changes in the market,to provide accurate price information for enterprises.At the same time,monetary policy should give priority to ensuring domestic economic growth and industrial upgrading,the implementation of a stronger exchange rate policy in the stability,catalytic technology export enterprises to improve the level of trade,construction of new trade competitive advantage through technology diffusion and technology transfer.