Research On The Effect Of Exchange Rate Changes Of Wood-based Panels’ Export Trade In China

Since the implementation of the new exchange rate system in July,2005inChina, RMB exchange rate has continued keeping appreciation, however, the exchange rateexperiences trend ofdepreciation recently. We can see that RMB exchange rate has great volatility and uncertainty which has a major impact onexport trade of China. The same situation occurs in wood-based panel export, including particleboard, fiberboardandplywood which all occupy an important position in the world market. Therefore, it’s so necessary to research the exchange rate impact onwood-based panel exporttrade in our country. This paper first summarizes the evolution process of China’s RMB exchange rate system, then introducesthe production,export quantity and value, the average export prices, majorexport markets and export dependence. On the basis of work above, the paper shows the relations of export and exchange rate. By choosing fifteen exporting countries and relevantvariables, the paper constructs a panel data model to analyze of the impact of real effective exchange rate of RMB on wood-based panel export from the empirical point of view. In addition,four wood-based panel companies are chosen to study enterprises’ exchange rate risk management. In the end, the paper puts forward some countermeasures and suggestions from macro level of government and micro level of companies.