The Research Of China's Export Commodities Competitiveness On The Classification Of Exchange Rate Flexibility

Price competitiveness is the core factor to determine a country's development, and it is also the basis of the product upgrading and the survival of the fittest, While Exchange rate flexibility is the best indicator of the export price sensitive. From 2005, the system reform of China's exchange rate, the Yuan continues to be strong and the trend of long-term appreciation demonstrated by the surface in economic policy. Movements of the exchange rate will cause changes of china's commodities in relative prices, which led to changes in demand for export goods. Study from the flexibility of the exchange rate, it has strong theoretical and practical significance to discuss the price adjustment space and its competitiveness problem under the appreciation of Renmibi: In macroeconomic, it will affect china's international trade, capital flows and the adjustment of industrial structure; In microeconomic, the operating strategies of various types of enterprises will be impacted.First, the article expounded the trade performance and characteristics after China's reform, summarized the adaption strategies of export enterprises under appreciation, put forward the important meaning of exchange rate flexibility by different export products, and illustrated the general effect of price adjusted by exchange rate flexibility in theoretically of Marshall - Lerner Condition. Secondly, the article compared the exchange rate flexibility models, deduced China's trade demand model by improving SITC classification and incorporating input-output effect, classified our export products, updated the data, and finally calculated the value of exchange rate flexibility. The conclusion is that most of flexibility values are negative, and the absolute values are less than 1. The low exchange rate flexibility goods include agricultural products, instrumentations, chemicals, machinery products, transportation goods; The high exchange rate flexibility goods includes printing and paper products and metal products; Unit exchange rate flexibility goods are mechanical and electrical products. In addition, the textile and apparel goods belong to the category of positive flexibility, which maintain higher market shares. Again, based on standardized methods for measurement of the impact of exchange rate flexibility variables, analyzed the smoothing and delay problem; Finally, according to the empirical results, with the features of representation exports, the article forwarded the effective suggestions: For low price elasticity of agricultural products, it is better to reduce price and costs to maintain profits; For the resilient metal products, improving product quality and technical input to meet the needs of domestic and foreign markets; For the unit flexible electromechanical products, stabilizing prices and improving product value-added to maintain market shares; For positive flexible textile and apparel products, appropriately raising price to alleviate the pressure of appreciation.