The RMB Exchange Rate Pass-Through Effect And Export Pricing-Power Of China’s Clothing Enterprises

The international trade statistics show that our country’s clothing export share is morethan a third of global export market.Since2001China’s accession to the world tradeorganization, it has become one of the biggest businesses in benefit in our country,and it playsvery important roles in promoting our international competitiveness and improving China’sinternational status. In recent years, the international community has increased the pressure onthe appreciation of the RMB exchange rate, from July21,2005in which china carries out thesecond exchange rate reform to now, the RMB exchange rate accumulated appreciation ismore than20percent.Based on the background of the RMB rising, this paper studies theexchange rate pass-through effect to our country clothing export price.First of all, the paper states exchange rate pass-through theory and analyzes the pricingmechanism of the clothing export enterprises. Secondly, based on the RMB exchange ratepass-through theory, Through the selection of five variables RMB nominal effective exchangerate, our clothing’s export price, money supply, clothing consumer price and clothing costprice, this paper analyzes the pass-through effect of RMB exchange rate on our countryclothing export price: in theory, this paper draws a conclusion by adopting mainly graphicsanalysis and formula deduction; in the empirical aspect, this paper comes to conclusions bymainly choosing the correlation coefficient method and the econometric models.Differentresearch methods came to the same conclusion: the pass-through effect of RMB exchange rateon our country clothing export price is less than1, this is to say exchange rate pass-through isnot complete. Finally, combined the above research with the theory of Pricing-to-market inintroduction and export swap cost of our country clothing in the third chapter, and this paperproposes the present situation of deficiency in pricing power of our country clothing exportenterprises,and summarizes this other major conclusions and puts forward some suggestionsfor improvement.