• East Asian Economic Review
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• v.16 no.3
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• pp.273-290
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• 2012

While the issue of RMB (Renminbi, Chinese Yuan) revaluation became the focus of world attention in 2003, the reform of the RMB exchange rate regime in 2005 didn't fundamentally solve the RMB appreciation problem, and even in 2008 the global financial crisis made RMB appreciation face new challenges and risks. It appears that the rise in RMB value is caused by supply exceeding demand in China's foreign exchange market; however, intrinsically it is due to the asymmetry in RMB exchange rate formation mechanism. The export tax rebates policy implemented by Chinese government is one of the leading causes of the asymmetry. This study constructs a transmission model between export tax rebates and foreign exchange rates, and applies the Granger Test to validate the causality between kernel variables based on correlative data from 1994-2011, and uses the error correction method to analyze the quantified relations of kernel variables, and finally gets the contribution rate of export tax rebates to RMB appreciation.

• International Commerce and Information Review
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• v.19 no.3
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• pp.83-105
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• 2017

I tried to analyze export relation of influence in Chinese H beam(common steel), Hot Rolled Steel(common steel), Plate(common steel) which could be influenced immediately by China's cancellation of the export rebate of value added tax in 2010 through the statistic methods such as cointegration, Granger causality, impulse response and variance decomposition. In the first period they mutually influenced each other in export to Korea but in the second period, this relation of influence was lessoned. Due to production expansion of Hot Rolled Steel(common steel), Plate(common steel) in Korea, the change of import trend, the market change of steel users' industries and China's expedient export of boron steel to Korea, mutual influence among these products was greatly declined. Ever since Hyundai Steel's production expansion involving blast furnace facilities, there is need for the industry to concentrate on developing new markets for its facilities' output in Korea. Therefore, Korea's steel industry desperately needs strength of de-jure standards such as unique quality standards and related certifications, efficient distribution management, as well as export promotion strategy through its global trading network to effectively address its structural supply-demand imbalances.