Research Article
Research on Trade Opening and RMB Real Effective Exchange Rate Volatility ——Based on the Perspective of Fixed Effects Panel Data Model
@INPROCEEDINGS{10.4108/eai.17-6-2022.2322886, author={Na Cheng}, title={Research on Trade Opening and RMB Real Effective Exchange Rate Volatility ------Based on the Perspective of Fixed Effects Panel Data Model}, proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China}, publisher={EAI}, proceedings_a={ICIDC}, year={2022}, month={10}, keywords={trade openness; real effective exchange rate of rmb; exchange rate fluctuations}, doi={10.4108/eai.17-6-2022.2322886} }- Na Cheng
Year: 2022
Research on Trade Opening and RMB Real Effective Exchange Rate Volatility ——Based on the Perspective of Fixed Effects Panel Data Model
ICIDC
EAI
DOI: 10.4108/eai.17-6-2022.2322886
Abstract
Based on China's economic reality, this article analyzes the impact of trade import and export on the real effective exchange rate of RMB under the background of economic globalization. Firstly, through a systematic study of relevant literature at domestic and abroad, the meanings of openness and RMB exchange rate and the general mechanism of the impact of a country's import and export trade on exchange rate are clarified. Secondly, based on the more optimized fixed effect model selected after Hausman test, and further descriptive statistics, correlation analysis, panel regression model and robustness test are used to carry out mathematical analysis on the influence of China's total import, total export and total import and export on RMB exchange rate. After that, based on the review of studies on the relationship between trade opening and RMB effective exchange rate, this article uses the annual data of 23 provinces and municipalities from 2013 to 2019 to build a two-vector autoregression model of import and export trade data and RMB real effective exchange rate. The results show that China's import and export trade in the short term will make RMB real effective exchange rate change, and gradually incline to stable, meanwhile, China's import volume has a greater and more significant impact than China's export volume.
