Research On The Impact Of RMB Effective Exchange Rate Changes On Employment

The Yangtze River Economic Belt traverses the east,middle and west of my country.As a major national strategic development area,its comprehensive strength and degree of openness are at the top level in my country.However,the Yangtze River Economic Belt has serious employment problems,and by the impact of COVID-19,it has a certain impact on China's economic development,and the number of unemployed people has continued to rise,which has exacerbated the inadequate and unbalanced employment in the Yangtze River Economic Belt.Nowadays,with the continuous development of the open economy and global integration,my country's opening to the outside world and the level of international trade have steadily improved.The impact of the world economy on my country's economic development is inevitable.The RMB exchange rate serves as a direct link between domestic and foreign markets.It plays an important role in macroeconomic regulation.Taking the Yangtze River Economic Belt as an example,this article sets out to explore the relationship between RMB effective exchange rate movements and employment.This article first collates relevant domestic and foreign literature on the impact of the exchange rate on employment,and specifically elaborates on the exchange rate and employment related theories,and then it further analyzes the three transmission mechanisms of RMB exchange rate on employment,which are foreign trade transmission mechanism,foreign direct investment mechanism and resource allocation mechanism.Then,a detailed description of the employment situation in the Yangtze River Economic Belt was made through statistical analysis.Finally,using the relevant data of the Yangtze River Economic Zone from 2000 to 2019,the panel regression model is used to study the impact of RMB effective exchange rate movements on employment,and then the Yangtze River Economic Zone is divided into upper,middle and lower reaches according to the geographical division of previous scholars and to promote the development of the Yangtze River Economic Belt leading group,then comparative analysis is carried out.The empirical results show that for the Yangtze River Economic Belt as a whole,there is a negative correlation between the RMB effective exchange rate movements and the overall employment in the Yangtze River Economic Belt,that is,the devaluation of the RMB will promote employment;for the region,the movement of the RMB effective exchange rate affects the Yangtze River Economic Belt.The middle and lower reaches have negative impacts.Among them,the lower reaches of the Yangtze River Economic Belt are the most prominent,the upper reaches of the Yangtze River Economic Belt are second,and the middle reaches of the Yangtze River Economic Belt have the weakest impact.