Education, Science, Technology, Innovation and Life
Open Access
Sign In

Impact of Exchange Rate Fluctuations on the Quality of Products Exported by Enterprises

Download as PDF

DOI: 10.23977/acccm.2024.060109 | Downloads: 7 | Views: 162

Author(s)

Yaqi Ma 1

Affiliation(s)

1 School of Economics, Shanghai University, Shanghai, 200444, China

Corresponding Author

Yaqi Ma

ABSTRACT

This paper uses the data matched between China's 2000-2006 industrial enterprise database and the customs product side of the transaction database to study the impact of RMB exchange rate fluctuations on the quality of enterprise export products. This paper finds that: the RMB exchange rate and enterprise product quality are positively correlated with each other, and the effect is significant, the appreciation of RMB helps to upgrade the quality of export products; at the same time, it analyses that in the face of different enterprise productivity, the impact of exchange rate fluctuations on product quality is heterogeneous, the greater the enterprise productivity, the greater the motivation of enterprises to improve product quality in the case of RMB appreciation; when analysing the impact mechanism, it verifies that the impact of exchange rate fluctuations on product quality is through the export of high quality, low quality and high quality products by enterprises. In the analysis of the influence mechanism, it is verified that the influence of exchange rate fluctuation on product quality is through the enterprises' choice of high-quality and low-quality products when exporting.

KEYWORDS

Exchange Rate, Export Product Quality, Influencing Factors, Product Entry and Exit

CITE THIS PAPER

Yaqi Ma, Impact of Exchange Rate Fluctuations on the Quality of Products Exported by Enterprises. Accounting and Corporate Management (2024) Vol. 6: 63-71. DOI: http://dx.doi.org/10.23977/acccm.2024.060109.

REFERENCES

[1] Fan Haichao, Huang Wenjing, Wu Caiyun. Trade liberalisation and intra-firm product quality adjustment. China Industrial Economy, 2022(01):93-112.
[2] Ji Kejia, Zhang Mingzhi. The impact of RMB exchange rate changes on enterprises' decision-making on export products--an analytical perspective based on vertical specialisation. International Economic and Trade Exploration, 2018, 34(05):68-90.
[3] Li Ruiqin, Wen Jun. The impact of industrial agglomeration on product quality upgrading of Chinese firms' exports--a micro test based on upstream and downstream industry linkages. Macroeconomic Research, 2021(12):53-68.
[4] Mao Risheng, Chen Yaowen. Exchange rate changes, product reallocation and industry export quality. Economic Research, 2021, 56(02):123-140.
[5] Shi Bingzhan, Shao Wenbo. Product quality measurement and its determinants of Chinese enterprises' export products - A micro perspective on cultivating new competitive advantages in export. Management World, 2014(09):90-106.
[6] Wang Yaqi, Dai Ri, Xu Jianwei. Exchange rate, product quality and export prices. World Economy, 2015, 38(05):17-35.
[7] Wang Yaqi, Tan Xiaofen, Zhang Jinhui, Lu Bing. RMB exchange rate, trade mode and product quality. Financial Research, 2018(03):71-88.
[8] Wang Yaqi, Yu Miaojie. Import, product quality and export price exchange rate pass-through. Economics (Quarterly), 2020, 19(03):847-874.
[9] Wang Yaqi, Yu Miaojie. The impact of exchange rate on the export share of China's processing trade: A market demand perspective. World Economy, 2021, 44(10):57-77.
[10] Xu Jiayun, Tong Jiadong, Mao Qilin. RMB exchange rate, product quality and firms' export behaviour-an empirical study at the level of Chinese manufacturing firms. Financial Research, 2015 (03):1-17.
[11] Yuan Zhigang, Shao Ting. The impact of RMB appreciation on the change of profitability of various industries in China--A study based on the input-output table in 2007. Financial Research, 2011(04):1-15.
[12] Yu Miaojie, Zhang Rui. The upgrading effect of RMB appreciation on export quality: Micro evidence from China. Management World, 2017(05):28-40+187.
[13] Yu Miaojie, Zhang Rui. Accurate measurement of China's manufacturing export quality: challenges and solutions. Economics (Quarterly), 2017, 16(02):463-484.
[14] Yin Desheng. Determinants and trends of product quality upgrading in exports since China's WTO accession. Finance and Trade Economics, 2011(11):31-38.
[15] Zhang Huiqing, Tang Haiyan. Renminbi appreciation, corporate behaviour and export trade--an empirical study based on a large sample of corporate data: 2005~2009. Management World, 2012(12):23-34+45+187.
[16] Zhang J. Financial inhibition, financing constraints and export product quality. Financial Research, 2015(06):64-79.
[17] Zhang Mingzhi, Ji Kejia. The impact of RMB exchange rate changes on the export product quality of Chinese manufacturing enterprises. China Industrial Economy, 2018(01):5-23.
[18] Zhang Xia, Wang Yannan, Shi Bingzhan. De facto exchange rate regime, firm productivity and export product quality. World Economy, 2020, 43(01):170-192.
[19] Zhu Shujin, Li Jiang, Zhang Qian, Zhong Tenglong. Environmental information disclosure, cost shocks and product quality adjustment of enterprises. China Industrial Economy, 2022(03):76-94.
[20] Bas M, Strauss-Kahn V. Input-trade liberalisation, export prices and quality upgrading. Journal of International Economics, 2015, 95(2):250-262.
[21] Tang H, and Zhang Y. Exchange Rates and the Margins of Trade: Evidence from Chinese Exporters. CESifo Economic Studies, 2012, 58(4):671-702.

Downloads: 13787
Visits: 183784

All published work is licensed under a Creative Commons Attribution 4.0 International License.

Copyright © 2016 - 2031 Clausius Scientific Press Inc. All Rights Reserved.