Rmb Real Effective Exchange Rate Impact On China's Employment Analysis

The RMB exchange rate policy as an important open economy macro policy adjustmentmeans to achieve internal and external balance have an important role. Since the reform andopening up, China's economic internal equilibrium and external equilibrium often conflict,Triggered on the exchange rate and exchange rate regimes of the continuous controversy. Theappreciation of the RMB exchange rate at the Week Period, with rising unemployment and thereality of the Chinese context, in‐depth study of the impact of exchange rate changes onemployment in maintaining China's sustained economic growth and employment lasting stabilityand realize the coordinated development of economic internal and external balance has animportant Theoretical and practical significance.This paper summing up the domestic and foreign scholars on the exchange rate andemployment research, and to further explore research in this area, which constitutes a fullanalysis of the starting point. Then this article explains the concept of the exchange rate and theconcepts related to a detailed description of the distinction, in this based on the real effectiveexchange rate of China's arithmetic average was calculated, in the third part of this theory in theexchange rate impact of employment on transfer paths are described, followed by respectivelyfrom 1980 to 2009 China's employment and the real effective exchange rate fluctuations weredescribed and instructions. In the empirical analysis of some selected time series data, errorcorrection model of real effective exchange rate changes on China's trade sector and non‐tradedsector employment in the short and long term effects, found two‐sector employment in theexchange rate and cointegration relationship exists, and the exchange rate is not conducive totrade sector employment, but employment is conducive to non‐trade sector.At present, Chinese scholars to exchange rate changes affect the employment of more thanremain in the exchange rate impact on the trade sector employment of theoretical and empiricalanalysis, this paper, the exchange rate impact on non‐trade sector employed an empiricaltwo‐sector research, has enriched the theory in this regard.