Research On The Impact Of Kip Exchange Rate Fluctuations On Laos' Import And Export Trade

Under the background of economic globalization,a country's foreign trade plays an important role in its economic development.As a bridge of trade between countries,the fluctuation of exchange rate will directly affect the development of international trade and the economic of a country.In terms of the study of the relationship between exchange rate fluctuations and international trade,domestic and foreign literatures tend to focus on developed countries such as Europe and the United States,while there are few relevant studies on less developed regions.As one of the less developed countries in the world,Laos gradually integrated into the world economic and trade system after the trade liberalization reform in 1986 and became part of the global industrial chain,after which Laos' economy boomed.However,as a large agricultural country,Laos has a weak resistance to foreign exchange risks in the process of rapid development of foreign trade,which exposes many policy problems in foreign exchange management.Therefore,this paper combines the exchange rate theory with the actual situation of Laos' international trade,aiming at deeply exploring the relationship between Kip's exchange rate fluctuations and the development of Laos'international trade,and providing a theoretical and practical basis for the foreign exchange management and policy formulation.The study on the impact of Kip exchange rate fluctuations on Laos' import and export trade is mainly divided into seven parts.The first chapter introduces the background,significance and innovation of the research.The second chapter reviews the research status of exchange rate and trade at home and abroad.Chapter three mainly introduces the theoretical basis and mechanism of the impact of exchange rate fluctuations on international trade.Chapter four analyzes the import and export trade of Laos from the perspective of total trade volume,commodity structure and country structure.Chapter five analyzes the fluctuation of Kip exchange rate.In Chapter six the VAR model is used to explore the evidence of the impact of exchange rate fluctuations on Laos' import and export from an empirical perspective,and the conclusion is drawn that there is a long-term equilibrium and stable relationship between Laos' import and export volume fluctuations and the actual exchange rate fluctuations in kip.The seventh chapter puts forward corresponding policy suggestions according to the foregoing conclusions.