Exchange Rate Fluctuation On China’s Industrial Structure Upgrade Effect Research

Exchange rate and industrial structure is hot issues to currently China’s long-standing concern. Since the reform and opening up, China’s economic develop rapid, especially our country joins in the WTO organization, the domestic economy gradually combines with the world economy, and the exchange rate as an important weapon to balance the trade between countries and economic, in the economic development of various countries, it has the pivotal status. So the exchange rate movements not only influence China’s import and export trade and foreign direct investment, even deeply impact on China’s industrial structure and the transformation of industrial structure produces has major effect. Exchange rate can change the external demand for domestic demand, and accelerate structure of our country industry to the pace of transformation and upgrade. Flexible mechanism of exchange rate is beneficial to adjust the industrial structure of our country. Exchange rate can improve to our country position in international division of labor, thereby changing the industrial structure. Although many studies suggest that exchange rate on China’s industrial structure upgrading is to have certain effect, most research are from the single enterprise’s industry structure which study to the exchange rate and industrial structure relationship. Certainly, for the exchange rate and industrial structure, two parts mostly limited to international trade, and the macroscopic research vacancy. But with the financial markets continue to improve, the financial scale is continually expanding, constantly adjust the industrial structure which it is necessary to exchange and upgrade industrial structure, from the macroscopic to grasp, promoting the transformation and upgrading of industrial structure of china. This paper mainly through the analysis of China’s many years of exchange rate and China’s three industry the relationship between the structure of our country industry which to find the direction of the transformation and upgrading, from the three major industrial structure’s angle to reflect China’s transformation and upgrading of industrial structure.This paper consists of five parts, the first chapter, firstly, analyzes the background and significance of the topic, and chooses the selected topic reason, and then through the analysis of the previous research results, summed up the literature review, later gives the research framework and the innovation and deficiency. From the beginning of the second chapter is the main part of this paper, the second chapter is the influence of the exchange rate change to upgrade industrial structure theory as the foundation, the main account of the exchange rate, exchange rate, industrial structure and industrial transformation and upgrading of the relevant concepts, and gives the transformation and upgrading of the industrial structure’s theory, and the second chapter is the foundation. The third chapter is the influence of the exchange rate change to upgrade industrial structure analysis of factors, mainly describes the exchange rate to upgrade industrial structure produced what kind of effect, so the first introduced our country exchange rate formation mechanism evolution path analysis, then the concrete details of structure of our country industry transformation and upgrading of existing problems, as well as our long exchange rate mechanism in the process of transformation of industrial structure exists some questions. The fourth chapter is the influence of the exchange rate change to upgrade industrial structure mechanism’s analysis, this chapter is the main part of the article, selected variables and data. Respectively, by using the unit root and cointegration tests analysis of real effective exchange rate and three the relation between to the industry, constructing the model conclusion. Finally, Grainger causality test to the actual effective exchange rate between the three major industries of the causal relationship. The fifth chapter is the conclusions and policy recommendations. Firstly, the conclusions are summarized, then, according to the present problems and the empirical result puts some countermeasures and suggestions.