The Study On RMB Exchange Rates And Intermediate Input Firm's Markups

In recent years,the “Firm Heterogeneity Theory” in the field of international trade research has reasonably explained the trade behavior of heterogeneous enterprises from the micro level of enterprises.At the same time,the RMB exchange rate policy is an important policy instrument of the Chinese government.The choice of the exchange rate system can affect the effectiveness of a country's macroeconomic policies and is inseparable from the national economy.In the background of economic globalization and the continuous reform of the RMB exchange rate market,the RMB exchange rate fluctuation has become norm,the international situation and the Chinese exchange rate policy will lead to RMB exchange rate change,and exchange rate fluctuations and instability will cause China's economy and trade Development has an important impact.In terms of micro-enterprises,the exchange rate shocks caused by exchange rate changes will have an impact on the trade structure and decision-making of enterprises,and then affecting the micro-performance and competitiveness of enterprises.In this paper,from the perspective of the impact of exchange rate changes on the markups of intermediate input firms,we sum the relevant literatures of scholars at home and abroad,and the research direction of this paper is further defined.Firstly,we summarize three kinds of literature about exchange rate change and markups;secondly,we review the historical policy of the RMB exchange rate arrangement since 1979 and the characteristics of the RMB exchange rate changes;and then,we use the micro-level trade data and exchange rate data of 2004-2006 to do the empirical research on the problem.Finally,The results show that the real effective exchange rate of RMB increase 1 percentage point will decreased by 0.0046 of markups.And the impact of different types of enterprises showed heterogeneous characteristics: on the scale of enterprises,for large enterprises,the real effective exchange rate of RMB increase 1 percentage point will decreased by 0.0268 of markups,for middle and small enterprises,the impact is not significance.For the state-owned enterprises,the real effective exchange rate of RMB increase 1percentage point will decreased by 0.0258 of markups,and for private and foreign-funded enterprises,the impact is not significance.In terms of regional distribution,the exchange rate of RMB has the greatest impact on the markups of western enterprises,with the RMB real effective exchange rate increasing by 1percentage point,the western enterprise's markups descread by 0.0245,and in the central region,the exchange rate of RMB increases by 1 Percentage point,the central region enterprise's markups descread by 0.0118,but the markups of the eastern enterprises have little effect.Finally,we summarize the conclusions of the research and put forward relevant policy recommendations.This paper provides a new perspective for us to understand the markups of micro-export enterprises through theoretical and empirical analysis.