Study On The Impact Of RMB Exchange Rate Changes On Product Quality Of China’s Manufacturing Exports

Manufacturing is an important symbol of a country’s economic strength and an important part of a country’s national economy.The share of China’s manufacturing exports is close to 90%,which is the main industry of China’s exports.Since entering the21 st century,with China’s accession to the World Trade Organization and the continuous expansion of export scale,how to ensure the steady growth of manufacturing export quality under the premise of export quantity growth is an urgent problem in China,China not only introduced the "Made in China 2025" plan,but also through a variety of measures to try to solve the Manufacturing exports "high quantity and low quality" phenomenon.At the same time,since the reform of China’s exchange rate system in 2005,the RMB exchange rate has been subject to frequent fluctuations due to the uncertainty of external factors,and the impact of exchange rate changes on the quantity and quality of a country’s exports has been a popular research issue among scholars at home and abroad.Based on this,the purpose of this paper is to investigate whether the change of RMB exchange rate will have an impact on the export product quality of Chinese manufacturing enterprises,and further investigate whether total factor productivity will have a moderating effect on the impact of RMB exchange rate change on the export product quality of manufacturing enterprises,and to consider how to optimize the exchange rate policy,promote the high-quality development of Chinese manufacturing exports,and provide a new approach to promote the export quality of Chinese manufacturing enterprises.The paper also considers how to optimize the exchange rate policy and promote the high-quality development of China’s manufacturing exports,so as to provide a new way of thinking and feasible reference to promote the improvement of Chinese manufacturing enterprises’ export quality.This paper firstly compares the domestic and foreign literature on exchange rate and export product quality,constructs the theoretical mechanism of exchange rate change affecting export product quality based on the existing theoretical system and research results,analyzes the direct effect of RMB exchange rate change on export product quality and the adjustment effect,and then analyzes the change of RMB exchange rate,the current situation of China’s manufacturing exports,and the facts of manufacturing enterprises’ export product quality.Then,the facts of RMB exchange rate changes,the current situation of China’s manufacturing exports,and the quality of manufacturing enterprises’ exports are explained to lay the foundation for the later research.In order to test the impact of RMB exchange rate changes on the export product quality at the enterprise level of China’s manufacturing industry,this paper measures the real effective exchange rate of RMB at the enterprise level and the export product quality at the enterprise level as research indicators,and constructs a two-way "firm-year" fixed-effects model to test the relationship between RMB exchange rate and the export product quality of enterprises.The relationship between RMB exchange rate and export product quality is empirically tested and its robustness is verified in various ways.First,RMB exchange rate appreciation can significantly improve the export product quality of China’s manufacturing enterprises;second,total factor productivity can positively regulate the promotion effect of RMB exchange rate appreciation on manufacturing export product quality;third,the change of export product quality is more obviously affected by RMB exchange rate appreciation for private enterprises,foreign-funded enterprises and enterprises in the eastern region.Finally,based on the findings obtained from the empirical evidence,this paper puts forward suggestions on how to ensure the exchange rate stability and enhance the innovation and creation ability of manufacturing industry respectively;the government should provide a stable policy environment for RMB exchange rate and high-quality development of manufacturing industry,and manufacturing enterprises themselves should focus on enhancing their innovation and creation ability and business strategies to improve product quality from within the enterprise.