| In July 2005,China began to implement the managed floating exchange rate system based on market supply and demand and adjusted in reference to a basket of currencies.In October 2016,RMB became the fifth currency joined into the Special Drawing Right(SDR)after dollar,euro,yen and pound.RMB continuously strengthened its international degree.When the late mercantilism put forward "the theory of trade balance",scholars began to research and proof the relationship between exchange rate and trade.Therefore,exchange rate became one of the most important factors to trade balance long ago.However,China still didn't have an authorized method to calculate REER which heavily depended on the methods from the world economic institutions.Nowadays,countries in the world are connected by the global value chain and affected by "a third country market effect" and industry heterogeneity,the national aggregate REER calculated under the traditional accounting system is unable to meet the needs of the reality.Therefore,This paper uses the industry classification of WIOD as standard,and measurement of real effective exchange rate(REER)in goods as method,to measure RMB REER of value-added from July 2005 to May 2016 of21 Chinese industries under the value-added accounting system and considering "a third country market effect".The measuring results show that comparing with the standard REER which published by BIS or IMF,the GVC REER has similar changes and fluctuations,but the amount of increase is small.The REER level of different industries show obvious heterogeneity.In the empirical part,the article with the help of ARDL-ECM model analyses the short and long-term effects on Chinese industry-specific import and export trade of REER change,REER fluctuation and income level.The results show that,the three variables have different influences on different industries,using aggregate REER to instead of industry-specific REER will produce "add-up mistake". |
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