Analysis on the Impact of RMB Exchange Rates on Manufacturing Trade between China and EU Zone

DOI

10.2991/ichssr-16.2016.11How to use a DOI?

Keywords

exchange rate, euro zone, manufacturing trade

Abstract

Since the RMB exchange rate regime has reformed for several decades, the exchange rate has been unilaterally increasing steadily and significantly. For long time, Euro zone is one of China's most important trade partners, as a result, import and export between two areas has increased a lot. During this period, the manufacturing import and export accounts a large share. This paper investigates whether the exchange rate between two currencies impact on the manufacturing trade between two countries. According to the situation analysis of the data and empirical analysis on trade econometric model, we find when RMB appreciates, the export from China to Euro market increases significantly, but the import from Euro market back to China shrinks a lot. Therefore, in order to improve trade environment in China, we need to appropriately use the financial instruments, to fully consider the role of euro currency, to change to increasing trade approach, and to improve the production structure.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Yimo Wang
AU  - Yonghua Yang
PY  - 2016/07
DA  - 2016/07
TI  - Analysis on the Impact of RMB Exchange Rates on Manufacturing Trade between China and EU Zone
BT  - Proceedings of 2016 2nd International Conference on Humanities and Social Science Research (ICHSSR 2016)
PB  - Atlantis Press
SP  - 42
EP  - 45
SN  - 2352-5398
UR  - https://doi.org/10.2991/ichssr-16.2016.11
DO  - 10.2991/ichssr-16.2016.11
ID  - Wang2016/07
ER  -