Effects Of Exchange Rate Volatility On Enterprise Export Stability

"High quality and stable export" is an important goal under China's new normal economic development.In the era of the continuous advancement of RMB internationalization and the uncertainty of the RMB exchange rate,how to stabilize the export stability of Chinese export companies has become the research purpose of this article.Therefore,this article uses the 2000-2007 China Industrial Enterprise Database and Customs Database to match the three-dimensional panel data of the enterprise-product-destination according to the HS6 digit code,and built a measure of exchange rate fluctuations and corporate export stability and empirically examines the impact of exchange rate volatility on the stability of Chinese enterprises' exports.We find that increased exchange rate volatility can significantly inhibit the stability of enterprise exports.Further heterogeneity analysis found that in the face of exchange rate volatility,the internal products of the enterprise will be differentiated and cannibalization effect between products will occur.Specifically,the higher the core product's export stability,the less affected by exchange rate volatility,while the marginal product's export stability is more affected by exchange rate volatility.Enterprises are more inclined to produce and export their core products,and gradually interrupt the export of marginal products until they exit.Research based on product BEC economic classification differences shows,the intermediate products can maintain better export stability,while the export stability of capital goods and consumer goods is poor.In addition,the stability of exports with high factor productivity,large scale and high profit levels is less affected by exchange rate volatility.Finally,this paper puts forward policy recommendations on how to maintain the stability of enterprise exports in the context of increasingly frequent exchange rate volatility.