An Empirical Study On Pricing-to-market Of Chinese Cephalopod Aquatic Export Products From The Perspective Of Exchange Rate Passthrough

Under the background of increasing risk of exchange rate fluctuation,it is of great practical significance to analyze Chinese cephalopod aquatic product exporters' pricing-tomarket power in the international market.This paper takes Chinese cephalopod aquatic products as the research object and adopts the research method of combining theoretical analysis with empirical analysis to explore the impact of the exchange rate change on the pricing-to-market(PTM)ability of Chinese Cephalopod Aquatic Products Exporters.Based on the theory of exchange rate pass-through and market-based pricing,the transmission mechanism of exchange rate pass-through and market-based pricing is analyzed.This paper combs the internal relationship between exchange rate pass-through and pricing-to-market ability,then it establishes the theoretical analysis framework of the effect of exchange rate pass-through on market-based pricing.After analyzing the export pricing characteristics of Chinese cephalopod aquatic products,this paper uses the "long panel" data from 2005 to 2018,then use the export price of cephalopod aquatic products as the cut-in point.After the stationary and cointegration test,a varied coefficient individual fixed effect model is established.the pricing-to-market capacity of China's cephalopod aquatic products was investigated from four levels: The first level investigates whether the change of bilateral exchange rate and "811" exchange rate reform policy will affect the export price of Chinese Cephalopod Aquatic Products in the international market;The second level investigates whether the "811" policy makes the exchange rate more sensitive to the change of the export market of cephalopod aquatic products and whether it makes the exchange rate elasticity of the export price of Cephalopod Aquatic Products Change.The third level investigates the pricing-to-market power of Cephalopod aquatic products in different target markets.The fourth level investigates whether the transmission effect of the exchange rate on the export price of Cephalopod Aquatic Products is heterogeneous due to the different income levels of the target market.After Theoretical Analysis and empirical research,this paper draws five main conclusions.(1)The change of exchange rate and the "811" exchange reform policy significantly influence the change in the export price of Chinese cephalopod aquatic products.In the international market,China's cephalopod aquatic products export pricingto-market power is weak,and it needs to absorb the greater part of the exchange rate risk.(2)Increasing the production cost of cephalopod aquatic products will significantly increase the export price.high-quality and high-value-added Cephalopod Aquatic Products Export unit profit is much higher.(3)After the "811" exchange rate reform,the transmission degree of the exchange rate to the export price of Chinese Cephalopod Aquatic Products is reduced,and this reform policy is not conducive to the improvement of the market pricing ability of Chinese cephalopod aquatic products in the international market.(4)After discounting the effect of inflation and considering the real purchasing power of RMB currency,Chinese cephalopod aquatic products only have strong pricing-to-market power in two target markets: Malaysia and the Philippines.In Hong Kong(China),it has certain pricing-to-market power,it does not have market-based pricing power in the United States,Japan,Korea,and Thailand.(5)In different income levels' export target markets,the degree of pricing-to-market,and the degree of exchange rate transmission is also different.Compared with high-income countries(regions),China's cephalopod aquatic products in middle-income countries(regions)have more pricing-to-market power.To improve the pricing-to-market power of Chinese cephalopod aquatic products,this paper puts forward countermeasures and suggestions from three levels.At the enterprise level,enterprises should improve the quality and deep processing technology of cephalopod aquatic products and increase their added value;in markets where exporters have pricingto-market power,they can continuously adjust till reaching optimal export prices according to the current exchange rate;at the same time,enterprises should fish scientifically according to the requirement of sustainable development.At the industry level,the Cephalopod Aquatic Products industry should guide its companies to compete in a reasonable and orderly manner,and the degree of Market Organization of the whole industry should be raised;the construction of Cephalopod Aquatic Products Industry Association should be strengthened,and the role of Industry Association should be brought into play;The cold chain logistics system of cephalopod aquatic products should be established and improved to link up various transportation modes efficiently.At the level of the government,maintaining the stability of the RMB exchange rate is conducive to the development of the export market of Cephalopod aquatic products;the policy of export subsidies for cephalopod aquatic products should be strengthened,export enterprises should be encouraged and supported to develop new international markets by building factories overseas,and relevant fishing protection policies should be improved to ensure the sustainable development of cephalopod aquatic products in China.