• ISSN: 2301-3567 (Print), 2972-3981 (Online)
    • Abbreviated Title: J. Econ. Bus. Manag.
    • Frequency: Quarterly
    • DOI: 10.18178/JOEBM
    • Editor-in-Chief: Prof. Eunjin Hwang
    • Executive Editor: Ms. Fiona Chu
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HOME > Archive > 2024 > Volume 12 Number 1 (2024) >
JOEBM 2024 Vol.12(1): 95-101
DOI: 10.18178/joebm.2024.12.1.782

How Does RMB Exchange Rate impact Chinese Manufacturing Firms’ Embeddedness in Global Value Chains?

Kexin Qian*, Wanxin Shi, Yuechen Yang, Zhangqing Luo, and Wenqiu Li
Accounting and Finance, Business School, Sichuan University, Chengdu, China
Email: qiankexin0306@163.com (K.X.Q.); 1345068816@qq.com (W.X.S.); yangyuechen2002@sina.com (Y.C.Y.)
*Corresponding author

Manuscript received June 21, 2023; revised August 8, 2023; accepted September 14, 2023; published March 25, 2024.

Abstract—As Chinese manufacturing firms may be involved in both export and domestic markets, it is possible that RMB exchange rate will affect the competitive position of enterprises in the global market which is mainly reflected in their embeddedness in global value chains. This paper will verify the influence and explore its path. Method: In this paper, the RMB/USD exchange rate is used as a characterizing variable in the foreign exchange market, and correlation analysis, regression analysis, mechanism analysis and subgroup regression are used to explore its impact on the embeddedness of Chinese manufacturing firms in global value chains, and to identify a reliable path of influence in order to propose policy recommendations and corporate strategies to face the foreign exchange market. Conclusion: The appreciation and fluctuation of RMB exchange rate both have negative impact on the embeddedness of Chinese manufacturing firms in global value chains during which process, FDI is a mediating effect.

Keywords—RMB exchange rate, FDI, mediating effect, subgroup regression

Cite: Kexin Qian*, Wanxin Shi, Yuechen Yang, Zhangqing Luo, and Wenqiu Li, "How Does RMB Exchange Rate impact Chinese Manufacturing Firms’ Embeddedness in Global Value Chains?" Journal of Economics, Business and Management, vol. 12, no. 1, pp. 95-101, 2024.

Copyright © 2024 by the authors. This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited (CC BY 4.0).

 
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