Research On Real Effective Exchange Rate Impact On Enterprise Productivity

With the re-industrialization process developed step by step, the direction of international capital flows reversed. The position of Manufacturing in the national economy can not be shaken, high-end equipment manufacturing industry also reflects economic strength of a country.What effect will RMB exchange rate appreciation have on the high-end equipment manufacturing, and what is the impact mechanism,these are urgent problems.The paper analyze effect of exchange rate on productivity through the middle of the price transmission mechanism, combined with high-end equipment manufacturing industry companies which had been measured TFP and single factor productivity, and the paper select panel data model to do empirical analysis. The results of empirical research: the real effective exchange rate and productivity is in typical positive correlation; Because of economies of scale and diversification, High-profit business enterprises are less affected by exchange rate fluctuations; Firms with low tax and high research and development investment can resist the exchange rate fluctuations. When the exchange rate appreciate companies with high export dependence can promote enterprise productivity.Considering that most existing studies are mostly based on 1990 to 2005, the RMB exchange rate reform began in 2005, so the range of choice for this study 2009-2015, and the paper take the time lag effect of exchange rate on the economy into account. When understand the impact of real effective exchange rate on productivity, this paper try to select the variable binding characteristics of high-end equipment manufacturing. This paper study the effects of exchange rate on a single factor productivity also analyzed the impact on total factor productivity. Finally, the paper give suggestion about how to effectively deal with the impact of exchange rates on the high-end equipment manufacturing productivity from the government and corporate level.