The Study of the Impact of the Appreciation of Chinese Yuan on the Employment of Chinese Manufacturing Sector

Yanling Shen

《International Journal of Social Science and Education Research》 3卷6期 (2020/06) Pp. 179-186

https://doi.org/10.6918/IJOSSER.202006_3(6).0033

摘要

The increasingly appreciated domestic currency has put pressure on the job market, especially in the manufacturing sector. China's manufacturing industries, dwelling at the low-end of the global industrial chain, occupied the majority share of exports and also played an important role in absorbing human resources. This paper firstly describes the current status of the manufacturing sector and then explains the transmission mechanism of exchange rate on manufacturing employment and obtains the effect of the appreciated RMB on the employment of manufacturing sector through these theoretical study, analyzing the factors that play a role in the process of a stronger RMB affecting the employment of manufacturing and putting forward corresponding countermeasures and suggestions according to these related factors. There are three main factors in the transmission of impact of exchange rate on employment: international trade and domestic consumption and capital inflows. Acquiring a thorough understanding of the short-term and long-term effects of the appreciation of Chinese currencies on the employment of manufacturing industry, which provide an important reference to the establishment of the Managed Floating Exchange Rate Regime and the development of the manufacturing industries.

關鍵字

The appreciation of RMB ； the manufacturing Sector ； theoretical study

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