The effects of RMB real effective exchange rate changes on the upgrade of the Chinese industrial structure - a case study of Shanghai

Ding, H, Liu, L and Pomorina, I (2017) The effects of RMB real effective exchange rate changes on the upgrade of the Chinese industrial structure - a case study of Shanghai. In: Paradigm Shifts in 21st Century Economics: 3rd International Research Conference, 2 - 3 November 2017, Kiev, Ukraine.

Abstract

By collecting the data from 1981 to 2013 and by applying the Cointegration Test, the Error Correction Model, and the Impulse Response Function, this paper analyses the effects of RMB Real Effective Exchange Rate on the industrial structure of Shanghai and its upgrade. The results show the two have an inverse relationship. The degree of Export Openness, the degree of Import Penetration, and the intensity of the Foreign Direct Investment in Shanghai will have a negative impact on Shanghai’s industrial structure, after an initial positive effect. The increase of RMB Real Effective Exchange Rate leads to the change of the structure of international trade and foreign direct investment in Shanghai, of which restrains the development of labour - intensive industries but strengthens the development of high value - added and technology - intensive industries. The paper recommends the industrial associations in Shanghai to participate in the global value chain reconstruction by promoting the supply side structural reform and by setting up an optimised new industrial system.

Item Type: Conference or Workshop Item (Paper)
Divisions: Bath Business School
Date Deposited: 30 Oct 2018 12:09
Last Modified: 23 Jul 2019 10:13
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