The Impact Of The RMB Exchange Rate On Chinese Exports

With the development of the internationalization of RMB,China's opening degree of expansion,the evolution of the trade conflicts between China and the United States,the effects of the RMB exchange rate on China's export trade research has important reference significance on exchange rate policy and international disputes.In recent years,from the perspective of heterogeneity,new progress was made in the research of exchange rate pass-throughjunttitay,based on the theory model and 2000-2011 Chinese customs export micro data,we research the relationship between export price and export volume with the enterprise product market share,and then split the price elasticity of exchange rate into two kinds of effect respectively.Through the model of individual fixed effect and time fixed effect,this paper studies that the overall export price elasticity of China is relatively small,about 0.077,and the exchange rate pass-through is about 92.3%,and the export quantity is of medium elasticity,about 0.374.According to different years in a specific industry,specific destination,we measure the export market share,and the result is that market share is negatively related to export price elasticity,and positively related to export quantity elasticity.Further,price elasticity has nonlinear relationship with market share,which is a remarkable hump-shaped(inverted U-shaped)relationship,namely the positive U-shaped relationship between market share and exchange rate pass-through level,which is consistent with theory.Theoretically analysis,market share is very small or very large,enterprise pays more attention to the competitive position in the local market,so it tends to adjust mark-ups in order to maintain import price's stability,and enterprise of medium level market share is somewhere in between.This conclusion is established and robust for different market share measurement methods,different subsamples,and different destination market sub-samples.Then,this article separate export price elasticity effect into competitors' price effect and cost effect,and competitors price effect is very small,and cost effect dominate the whole effect and has inverted U-shaped relationship with market share.The conclusion of theoretical model is verified and the robustness of the empirical conclusion is verified by several subsamples.In addition,this paper expands the research on different export products in each company,the asymmetry of appreciation and depreciation,export elasticity in various industries,and finally puts forward some policy suggestions.