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An Empirical Study on Effects of RMB Real Effective Exchange Rate on Zhejiang’s Exports and Imports

On 24/11/2014, in Economics papers, by rain

Exchange rate, as the ratio at which one currency can be converted into another currency, is an important factor which determines the competiveness of a country’s products in the international market. Since July 21, 2005, China began to implement an exchange rate system which is market-based, with reference to a basket of currencies and with managed floating. RMB is no longer pegged to the dollar. Since then, RMB, appreciated against the U.S. dollar, exchange rate has been 20.8%. Moreover, After June 22, 2010, the RMB exchange rate began to rise sharply again. Furthermore, in the current international political situation, the pressure of RMB appreciation is still large. How does the appreciation of the RMB exchange rate impact on the import and export trade? A study of RMB exchange rate movements on the impact of changes in China’s exports is significant, not only can help the corporation to strengthen their prevention on exchange rate risk, but also can maintain macroeconomic stability under the current situation. Zhejiang province, as a large district of China’s foreign trade, accumulated total import and export for about $ 253.47 billion in 2010. Compare to 2000, the number has increased by 9.11 times, in which exports for $ 180.48 billion, the cumulative growth since 2000 has been 9.28 times. Zhejiang Province leads the Trade surplus in China 2010. Foreign trade dependence of Zhejiang is as high as 61.94%, much higher than the national average (49.47%). What kinds of impact will RMB exchange rate changes on Zhejiang Province is worthy to study.In this article we will is mainly discuss how the real effective exchange rate impact changes on import and export trade of Zhejiang Province by empirical analysis. The empirical analysis can be divided into two parts. In the first part, we will first figure out the real effective exchange rate of RMB, and then select annual import and export data of Zhejiang Province, 1985-2010, studying the impact of the real effective for total imports and total exports. As a contrast, we select data of ordinary trade and processing trade, from 1992 to 2010. Respectively, we discuss the impact of the real effective exchange rate on the ordinary trade and processing trade exports. The results we can learn from the first empirical analysis are as follows:The results show that, for the model for total exports, exports of ordinary trade , processing trade export, the real effective exchange rate elasticity of exports are: -0.371395, -0.04686, -3.85749. That is, the depreciation of real effective exchange rate will promote the export of Zhejiang Province. Considering Model of total imports, ordinary trade model, processing trade import model, the real effective exchange rate elasticity are: -0.848948, -1.511114, -0.546121. RMB appreciation would lead to reduced imports of Zhejiang Province. Besides exchange rate, some other factors also have significant influences on trade, as this thesis finds out empirically. Foreign income has some influences on export, while the impacts of domestic income on import are much higher than foreign income. The elasticity of foreign income on export is proved as 0.089294、0.127326、0.082651. The elasticity of domestic income on import is 0.424135、0.45807、0.039556. That is to say, the rise of foreign income will increase the export and the rise of domestic income will promote the import. FDI has a positive influence on trade. As to WTO, it has a significant function both on export and import, while the former larger that the latter.In the second part of empirical analysis, we discuss main ten countries or districts who dominate in bilateral trade of Zhejiang. In this article, we select the United States, Japan, Korea, Britain, Germany, France, Italy, China, Hong Kong, Taiwan, Australia and other ten countries and regions, export trade data, 1992-2010. The empirical results show that the elasticity of real exchange rate on exports could be both positive and negative, in which the United States, Britain, France, Italy, Korea, Australia is negative, the figures are: -3.040642, -0.419316, -4.310107, -0.658606, -0.766074, -0.636961. In these cases, the appreciation real exchange rate can lead to decrease the export to these countries and districts. As for Japan, Hong Kong, Taiwan, the elasticity of real exchange rates on exports are 1.925742, 4.725782, 2.912126; RMB real exchange rate appreciation will increase the export.

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International trade is not only an economic phenomenon, but associat…

On 23/11/2014, in Economics papers, by rain

International trade is not only an Economic phenomenon, but associates with a variety of geographical, political and cultural factors closely. Some scholars have found that the size of international trade flows is much smaller than trade theory would predict. And the effects of geographical distance on international trade have been weaker than ever before. National culture is an important factor affecting foreign trade. It plays an important role in China’s foreign trade and makes a great contribution to promoting the development of China’s foreign trade by the way of fast, security and stability.Through studying the status of China’s foreign trade, this paper draws the following main conclusions:firstly, China’s foreign trade occupies an important position of the current world trade; secondly, it has a huge potential for development; thirdly, there is disparity between country structure of China’s foreign trade and imports and exports trade structure of China’s foreign trade. Based on these conclusions, this paper employs national cultural dimensions theory, cultural cluster theory and international trade theory, and then uses trade gravity model to analyze how national cultural distance influences China’s foreign trade. Research content and conclusions are as follows:1) The national cultural distance has a significant impact on China’s foreign trade. As an entire variable, national cultural distance has a negative impact on China’s foreign trade, while as a combined variable; national cultural distance has double influence on China’s foreign trade. The distance between some cultural dimensions, such as power distance, have positive effect on it, but other cultural dimensions, such as individualism vs. collectivism, have negative a effect on it. 2) The national cultural distance has some different effects between imports and exports. China’s import is influenced more easily than exports by national cultural distance. But there are also some different effects made by different cultural dimensions. China’s export is influenced more easily than imports by national cultural distance on dimensions of individualism vs. collectivism but more difficultly on dimensions of power distance.3) The national cultural distance has different effects between one group countries and other group countries. There are different effects in terms of significance, size, orientation and structural that the gap of cultural dimensions distance influence between China and other countries within group countries with similar culture.

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Foreign Trade Development of China in Intra-product Specialization Perspective

On 09/10/2014, in Economics papers, by rain

With the development of Economic globalization, the multi-national corporations extend overseas production network continuously, and intra-product specialization and trade has been an important way for the developing countries to involve in international specialization and trade. China seizes this chance and involves in intra-product specialization and trade by comparative advantage of low-cost labor, resources and other production factors. Since the1990s, processing trade and foreign trade of China have increased dramatically. In promoting the development of foreign trade, intra-product specialization has also brought some questions to China. It is an important and immediate task what are the effects of intra-product specialization to foreign trade and how to solve the existent problems of foreign trade within intra-product specialization that confronts China.This paper introduces the definition, characteristics, process impetus and formation mechanism of intra-product specialization, and study the reasons why China involves in intra-product specialization. Then it reviews the history and analyses the current situation China involves in international specialization. Afterwards, it explores the effects of intra-product specialization on foreign trade commodity structure, geography feature, and trade avails in China, and analyses the influence over the value of import and export and foreign trade disequilibrium by econometrics models. Finally, it discusses the strategies to develop foreign trade of China in intra-product specialization perspective.

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Research on Environmental Impact of Foreign Trade of Chinese Cement Products

On 04/10/2014, in Management, by rain

Based on foreign trade and the ecological environment at home and abroad and their relationship, this paper analyses the current situation of Environmental impact in foreign trade of cement products in our country, and studies the Granger causality test method to determine the causal relationships between oreign trade of cement products in our country and the ecological environment. Based on the theory of foreign trade, ecological environment and their relationship,”three effect” on Environmental impact of the foreign trade of Chinese cement products has been analyzed by CGE model empirically, and the effects of import and export trade on the ecological environment and the net effect are separately calculated. Then, data of both cement products production and trade at home and abroad as the foundation, the life cycle assessment method determines the research purpose, scope and environmental impact factor of ecological environment effect of the foreign trade of Chinese cement products, and accordingly life cycle inventory analysis. Life cycle inventory analysis results are characterized and standardized from nonrenewable resources consumption, global warming, photochemical ozone generating, acidification, eutrophication and human Health damage, using AHP to weight every environment impact assessment type. Finally, AGP method determines the exponent value and the corresponding proportion of the resources consumption coefficients and the environmental impact load. This paper established a index system of environmental impact of the foreign trade of cement product, which could be applied to other products. The conclusion drawn in this paper has important practical significance in the formulation of cement industry regulations and standards, cement products import and export structure adjustment and improvement of equipment and process.

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The Empirical Research of Impact on Port Logistics into Foreign Trade

On 02/10/2014, in Transportation, by rain

With the development of global economy and international trade,resource andfactors of production are flowing internationally more frequently, which means higherrequirements of transportation scale and efficiency. As crucial junctures in thelogistics process in the all–around transportation net,all ports are taking use of theiradvantages to develop port logistic,enlarge functions and promote competitive powerto supply all-around high quality services to customers in the tide of shipping beinglarger and using of containers.In the meanwhile,port logistic has great influence inthe develop of Foreign Trade.Therefore,it becomes gradually a focus to discuss aboutport logistics and Foreign Trade.Article took the relationship between Chinese port logistics and foreign trade forthe study. In the part of theoretical analysis, based on Economic theory to explore theimpact mechanism of port logistics and foreign trade, being different from theprevious one, the article established the evaluation system of the port logistics, fromboth supply and demand of port logistics to consider the influence on foreign trade. Inthe empirical part, different from the past, a single or a few major ports in the studysample, the article selected Chinese five port groups as research sample; five portgroups include nationally representative ports of all waters, making the study morerepresentative. Article did not choose to use econometric methods but to build astructural equation model; chose the data of1995-2009, the results showed that thelogistics input and output had positive impacts on existence of foreign trade, the inputhad positive impact on the output, and the impact of input is bigger. Port coastlinelength, number of ports and berths of more than10,000tons are important influencefactors. Indicators measuring the port output capabilities including port cargothroughput, foreign trade port container throughput and throughput of the port trade.Finally, based on theoretical analysis and empirical results of the analysis, Article putforward the healthy policy of Chinese port logistics.

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Research on the Foreign Trade Sustainable Development of Lvliang City Based on Low-carbon Economy Condition

On 25/09/2013, in Trade, by rain

As the world Economic development has been relying on industrilization, the global Environmental and ecological system is heavily damaged. Low-carbon economy is surely to be good choice. Shanxi, a province in central China, is rich in energy. She has been constantly providing coal energy to the whole country, which made her ecological system badly damaged. Lvliang, a city in Shanxi province, holds a great reserve of coal. For that, coal products, iron and steel products and chemical products comprise the three main outputs of her industry. This kind of industrial structure forms a similar foreign trade structure. As the time goes, the local Environmental and ecological system worsened tremendously. The fluctuation of her Economic and foreign trade development is another consequence. During the year2008-2009, the fluctuation was more obviously, the GDP development ratio dropped from15.5%to2.5%, while the development ratio of her foreign trade declined to-76.9%from82.2%, as the result of the global financial crisis. It is commonly agreed that this kind of development pattern is unsustainable for the requirement of low-carbon economy. What makes the importance that the necessity of deep research on the foreign trade sustainable development paths for Lvliang based on the low-carbon economy condition.At present, domestic and foreign scholars’study on the development of low carbon economy and foreign trade-related issues focused on the ecological environment and foreign trade and foreign trade, eco-efficiency measurements. Foreign scholars mainly focused on the Foreign Trade and sustainable Development Strategies study. However, the combination of Lvliang foreign trade development can be found, but Lvliang’s foreign trade and similar issues are relatively less involved in the existing literature, this study of Lvliang;s development has great reference value.This article uses a literature analysis, case studies, comparative analysis, quantitative and qualitative analysis, combining Lvliang’s Foreign Trade in the low-carbon ecomy and Sustainable Development. In the course of the study, Lvliang’s industrial structure and development of foreign trade structure is a “Tree high and One low” structure. The problems of Lvliang’s foreign trade continued development are discussed. Her feasibility of achieving a low carbon economy and foreign trade for sustainable development is analyzed in multiple dimensions. And finally, the author gives multiple suggestions for Lvliang’s foreign trade sustainable development under the condition of low-carbon economy. The innovative method of this paper is the combination of the low-carbon economy and sustainable development, and put forward countermeasures and suggestions for her sustainable development of the foreign trade under the condition of low-carbon economy. However, for the limited time and my inadequate skills, this article is still far from perfection. I will work more hard to make it more scientific and more feasible.

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The Comparative Analysis of the Foreign Trade between Yanbian and Honghe

On 25/09/2013, in Trade, by rain

Yanbian Korean Autonomous Prefecture was bordered the North Korea and Russian Far East, and the regional advantage of border trade is obvious. After30years of reform and opening-up, the Yanbian region has made remarkable achievements. Opening-up efforts have been strengthened further on the Economic construction, to lay a solid foundation for the well-off society.The paper topic is “The Comparative Analysis of The Foreign Trade between Yanbian and Honghe”. So it mainly discussed the development of foreign trade in Yanbian area, there was similar development demand of the Red River and Yanbian border trade. This article compares the trade status of Yanbian with Honghe, and listed the characteristics of Yanbian foreign trade at first. Such as the volume of trade, the level of trade dependence, balance of the trade, foreign trade commodity structure, trade partners of import and export, and trade methods. By comparing, it pointed out the problems of Yanbian in foreign trade. First,Second, level of opening up of Yanbian area is low. Third, the commodity structure of import and export was relatively single. Fourth, the infrastructure constructions were not perfect. Fifth, the regional Investment was lack, and the interaction effect of cross-border Investment was poor. And the ways of trade development was insufficient. And the construction of trading partner platform was still very inadequate. And the region was the lack of Economic and trade expertise, etc.Finally put forward the countermeasures of foreign trade, first, promote the Tumen River Area Economic and trade cooperation actively. Second, strengthen the construction of cross-border export commodity base. Third, play the lead role of local government actively. Fourth, form the Investment interaction gradually. Fifth, cultivate area the foreign trade personnel actively. Sixth, develop the diversification of regional trade.

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Research on Foreign Trade in Yanbian

On 25/09/2013, in Trade, by rain

Along with the Jilin province opening to the outside world gradually, the Yanbian foreign trade continued to expand in size, which not only promoted the rapid development of Yanbian economy, but also to promote the Yanbian region of Investment, the introduction of advanced technology and the development of tourism. The Yanbian region occupies a be richly endowed by nature geographical advantage, with Russia and North Korea intensive resource complementary trend, as the border trade development created good condition. As a logistics base in Yanbian area expands gradually, the soft and hard infrastructure is also in constant improvement and development, however, by the end of2011Yanbian international dependence is only18.83%, far regions of China the average degree of dependence on foreign trade. Therefore, by the previous research achievements on Yanbian area trade development undertook thorough analysis, analysis of the Yanbian area of foreign trade advantage and inferior position, through the analysis of Yanbian region and the main trade countries of the trade data, find out Yanbian foreign trade block trade development bottleneck.Through the analysis of Yanbian regional trade development features of foreign trade in Yanbian area, although and trade at the beginning of the90time photograph had great progress, but there are still many problems, mainly summarized as follows:one is the Tumen River international logistics corridor construction lags behind; the two is the scale of foreign trade of small; three is the trade and market single, lagging behind the development of processing trade; the four is the lack of professional trade talent and a serious brain drain phenomenon.Finally, put forward to promote Yanbian area of foreign trade development countermeasure proposal, think Yanbian should give full play to the geographic advantage, develop modern logistics base, strengthen channel construction Investment, and edge country build platform of Economic and trade cooperation and trade mechanisms, secondly should take full advantage of the unique resources, the introduction of foreign capital and technology for deep processing, optimize the structure of import and export trade. Finally we should increase the main trade Investment, vigorously develop the processing trade, and actively carry out cooperation in Education and cultivate and use of foreign trade of high-quality personnel, to prevent the brain drain, strain every nerve and constantly promote the development of foreign trade in Yanbian area.

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Strategic Research on China Tobacco Yunnan Import and Export Co.,Ltd under Strategic Vision of “Going Global”

On 21/09/2013, in Agriculture, by rain

As a state-owned Enterprise, China tobacco has made outstanding contributions to national and local economy. Its import and export businesses also have been carried out for many years. Although it has obtained some achievements, the extent of participation in international market competition is still at a low level. Yunnan provides great amount of raw material for China tobacco, as well as more than40%tobacco raw materials for national tobacco industry. Yunnan tobacco export accounts for half of the national tobacco export. It is an important strategy to implement “going global” development strategy from our party and state. In Seventeenth Party Congress Report in2007, it was made clear to support enterprises develop international operations in research, production and sales, accelerate cultivating China’s multinational corporations and international famous brands and implement “going global” strategy. In July2009, after investigating Yunnan President Hu Jintao put forward “to develop Yunnan as the bridgehead for southwest-oriented open”. This is the strategic positioning done by state in the new historical period, as well as the very rare countries historical opportunity to accelerate development. This paper is closely around the company directly under China Tobacco Yunnan Province Corporation—“China Tobacco Yunnan Import and Export Co., Ltd”(referred to “C” Company), which is a professional foreign trade Enterprise in China tobacco monopoly system. By studying change process of country’s structure of foreign trade and specific monopoly environment, standing under the “going global” strategic vision and being based on the implementation of “bridgehead” strategy, this paper explores how “C” company to actively respond to international smoking control environment and raises the problems and countermeasures faced by “C” company. In addition, this paper takes combination of industrial enterprises and commercial enterprises to accomplish “going international” development strategy and “C” country’s internationalization.

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The Empirical Study on the Impact of Foreign Direct Investment to Economic in Shanxi Province

On 20/09/2013, in Finance, by rain

Foreign direct Investment (FDI) as the product of one of China’s reform andopening up has made a significant contribution for the last three decades of economicdevelopment in China. In theory, FDI not only has to make up for insufficient funds,and FDI from developed countries plays an important role in technology transfer,enhancing human capital, promoting institutional change, improving managementskills and other aspects. With the overall expansion of FDI in China, Shanxi Provincein the central region has gradually attracted the entry of FDI with its traditional heavyadvantage. The role of FDI in the economy of Shanxi determines Shanxi’s foreignpolicy in the future.This paper analyzes the impact of FDI to GDP growth, three industrial structure,foreign trade, the regional capital formation, technology spillovers and employmentempirically according to the FDI status in Shanxi Province, and then based on theempirical results makes clear Shanxi’s attitude to FDI and proposes the correspondingstrategies.Firstly, this paper describes the FDI status from the scale, the form, origin,industry distribution and the use of foreign areas of FDI in Shanxi Province, andanalyzes the main factors of attracting FDI in Shanxi Province by gray relationalmodel; Second, proves that FDI has a positive impact on the economy from GDPgrowth, three industrial structure, foreign trade, capital formation, technologicalspillovers and jobs of Shanxi province by empirical study; Finally, based on FDI’spositive effects to the Economics of Shanxi Province and the actual situation, thispaper proposes countermeasures,such as improving the Investment environment,expanding financing channels and guiding FDI distribution in Shanxi Province,toachieve the further introduction and the effective use of FDI, so that FDI helps theeconomy development from the capital, technology, personnel and Management inShanxi Province.

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