Research About Rmb Exchange Rate Fluctuation Effect On The Export Of Labor-intensive Industry

Since the reform and opening up, the RMB exchange rate system had gone through several stages. Like an internal system, peg to the US dollar as a basket of currencies system and a "reference" managed floating exchange rate system. During the long period, the RMB had gone through four stages of depreciation and appreciation.Especially after the reform of exchange rate system in July 21, 2005,the exchange rate began to rise sharply and it impacted deeply on various aspects of China’s economy, which attracted the world’s attention. The present studies result in a general tend to research on the relationship between exchange rate and the total amount of China’s foreign trade, but less on the exchange rate and labor-intensive industry on the impact of export documents.In recent years, with the appreciation of the RMB and the rising cost of materials,the labor intensive industry exports have been affected to a certain extent. While with China’s national condition analysis, the labor intensive industry will not disappear in a short period, and it can still make a great contribution to the economy. Therefore, how to use the fluctuation of exchange rate effectively, and find a reasonable strategy to help the labor-intensive industry have a sustained and healthy development is this article’s terminal goal. This paper used a method about combining theory and empirical analysis from different trade ways, in order to fully reflect the result of rate’s fluctuation on China’s labor intensive export industries. Thus provide some basis suggestions for the adjustment of the internal structure of labor intensive industry, and help to realize the industrial transformation for the country.There are more detailed introduction for the process of the RMB exchange rate fluctuations, the reason about the appreciation of RMB and the labor-intensive industry’s general situation about China in this paper.What’s more,the paper collected the RMB exchange rate fluctuation and the labor intensive’s data involved with export trade in recent years, used VAR model to quantitatively analyze the impact between the RMB exchangerate volatility and the export of labor-intensive industries in china, expected to get some conclusions as follows:First,the fluctuation of the RMB exchange rate is an important reason for the labor export structure’s change, it can lead the low value products to the high value products;Second,when the RMB exchange rate gets appreciation,China’s laborintensive products which are in the processing trade exported, are mainly sharp full than those in general trade;Third,the appreciation of the RMB exchange rate will improve the proportion of high-tech products accounted for the export products significantly; Last,to a certain extent,the appreciation of the RMB is a great help to optimizing the structure of export trade, it also can promote to optimize and upgrade the economic structure.