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Changes in RMB Exchange Rate and Innovation of (Listed) Enterprises

Author(s)

Hongting Kuang

Affiliation(s)

International Business College, South China Normal University, Guangzhou, Guangdong, China *Corresponding Author

Abstract

China proposed that innovation plays an important role in the prosperity and development of a country, highlighting the key position of innovation in the overall modernization construction and emphasizing the necessity for enterprises to participate in innovative development and master key core technologies. Since entering the 21st century, globalization has accelerated, and Chinese enterprises have become increasingly involved in economic globalization, constantly relying on their strong technology to secure a place in the global division of labor. China implemented a managed floating exchange rate system based on market supply and demand after the exchange rate reform, adjusted with reference to a basket of currencies, which increased exchange rate uncertainty. The article adopts an empirical analysis method from the perspective of changes in the RMB exchange rate, and establishes a panel data regression model to examine the impact of the rise and fall of the RMB exchange rate on the innovation capability of enterprises. The results indicate that the appreciation of the Renminbi can enhance the innovation capability of enterprises. This conclusion is beneficial for policy makers to formulate corresponding exchange rate policies to empower the construction of innovative countries.

Keywords

RMB Exchange Rate; Enterprise Innovation; Innovation Capability

References

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