The Asymmetry Of The Exchange Rate Pass-Through-Evidence From China And Japan Trade

In the last two decades or so,the global economy witnessed not just a rapid expansion in international trade but also the growing prominence of dynamic emerging economies in the global trade landscape.Emerging markets have steadily become systematically important trading centers thanks to the growing role of global supply chains and high-technology exports.China as the emerging market countries,the RMB exchange rate system reform since July 2005,the RMB against the U.S.dollar exchange rate volatility of the third expansion.The U.S.dollar exchange rate volatility from 0.3% expanded to 0.5% in 2007,expand to 1% in 2012.In the inter-bank spot foreign exchange market,the RMB against the U.S.dollar exchange rate floating range expanded from 1% to 2% since March 17,2014.The relaxation of exchange rate volatility increases the uncertainty and complexity of the foreign exchange market.As a result of the import and export trade with the production of the delay on the transaction affected the decision of the import and export manufacturers to a large extent,the exchange rate volatility increase and thus increase the uncertainty and complexity of import and export manufacturers.Analyse how the exchange rate pass-through of RMB influence the import and export price,and examines how the exchange rate volatility of RMB transfer to the import and export price,and the incomplete and asymmetric of the exchange rate pass-through what are the differences between different industries of domestic exports.The value of this study for China is what kind of industry and country's trade policy should implement,which has the profound influence to maintain the economy internal and external balance.In this paper,we find that the exchange rate pass-through is assumed to be linear in the previous studies,that is,the direction of exchange rate and exchange rate fluctuation is the same as the transfer coefficient of the commodity price.Due to the assumption of the linear constraint is too strong,which is hard to conform to the macro environment,so we study the asymmetry of the exchange rate pass-through,and explain the causes and effects of the asymmetry of exchange rate pass-through to import and export commodities prices.This paper uses the panel data from 2000 to 2011 to analyze the regression model.Draw a corresponding conclusion: firstly,there is a significant effect on the export price of the RMB against the Japanese yen in the real exchange rate and nominal exchange rate.Under the nominal exchange rate,the exchange rate transfer coefficient is close to 0.6,which is a monopoly advantage of export companies in foreign markets.However,the exchange rate transfer coefficient under the real exchange rate is over transmitted and incomplete.This is because each market has its own characteristics,a huge difference between export exchange rate transfer in various industries caused by market segmentation;secondly,the HS8 in export commodity prices in nominal and real exchange rate transfer direction are significantly asymmetric,and the RMB appreciation on exports the commodity price transfer rate is higher,and this part of the existing literature results are not the same,the price of RMB appreciation of the yen by manufacturers to gain greater market share;thirdly,the panel data of the entire industry and the electrical and electronic industry,export commodity price fluctuations in the nominal exchange rate exists significant asymmetry,large fluctuations of the exchange rate of the export price of goods is much smaller,this phenomenon shows that the exchange rate fluctuations in the larger fluctuations in the price does not change,and considers that the exchange rate will return to equilibrium.